UNITED
STATES SECURITIES AND EXCHANGE COMMISSION



WASHINGTON,
D.C. 20549



FORM 20-F



 ̈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
















|PRESENTATION OF FINANCIAL INFORMATION                           | 4                                                                           
|--------------------------------------------------------------- | ----------------------------------------------------------------------------
|CAUTIONARY STATEMENT WITH RESPECT TO FORWARD-LOOKING STATEMENTS | 5                                                                           
|                                                                |                                                                             
|PART I                                                          |                                                                             
|                                                                |                                                                             
|ITEM 1.                                                         | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS                       
|ITEM 2.                                                         | OFFER STATISTICS AND EXPECTED TIMETABLE                                     
|ITEM 3.                                                         | KEY INFORMATION                                                             
|ITEM 4.                                                         | INFORMATION ON THE COMPANY                                                  
|ITEM 4A.                                                        | UNRESOLVED STAFF COMMENTS                                                   
|ITEM 5.                                                         | OPERATING AND FINANCIAL REVIEW AND PROSPECTS                                
|ITEM 6.                                                         | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                                  
|ITEM 7.                                                         | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                           
|ITEM 8.                                                         | FINANCIAL INFORMATION                                                       
|ITEM 9.                                                         | THE OFFER AND LISTING                                                       
|ITEM 10.                                                        | ADDITIONAL INFORMATION                                                      
|ITEM 11.                                                        | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                  
|ITEM 12.                                                        | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                      
|ITEM 13.                                                        | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                             
|ITEM 14.                                                        | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
|ITEM 15.                                                        | CONTROLS AND PROCEDURES                                                     
|ITEM 15T.                                                       | CONTROLS AND PROCEDURES                                                     
|ITEM 16A.                                                       | AUDIT COMMITTEE FINANCIAL EXPERT                                            
|ITEM 16B.                                                       | CODE OF ETHICS                                                              
|ITEM 16C.                                                       | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                      
|ITEM 16D.                                                       | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                  
|ITEM 16E.                                                       | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS      
|ITEM 16F.                                                       | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                                
|ITEM 16G.                                                       | CORPORATE GOVERNANCE                                                        
|ITEM 17.                                                        | FINANCIAL STATEMENTS                                                        
|ITEM 18.                                                        | FINANCIAL STATEMENTS                                                        
|ITEM 19.                                                        | EXHIBITS                                                                    



3







PRESENTATION OF FINANCIAL INFORMATION



Unless otherwise specified or the context
otherwise requires, references in this Form 20-F (also referred to as the Annual Report), to “$,” “US$,”
“Dollars,” “foreign currency” or “U.S. Dollars” are to United States Dollars, and references
to “S/.”, “Nuevo Sol” or “Nuevos Soles” are to Peruvian Nuevos Soles. Each Nuevo Sol is divided
into 100 céntimos (cents).



Credicorp Ltd. is a
Bermuda limited liability company (and is referred to in this Annual Report as Credicorp, the Company, we, or us, and means either
Credicorp as a separate entity or as an entity together with our consolidated subsidiaries, as the context may require). We maintain
our financial books and records in U.S. Dollars and present our financial statements in accordance with International Financial
Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). IFRS differ in certain respects from
United States Generally Accepted Accounting Principles (U.S. GAAP).



We operate primarily through our four operating
segments: banking (including commercial and investment banking), insurance, pension funds, and brokerage and other. See information
about operating segments in “Item 4.-Information on the Company: (A) History and Development of the Company, and (B) Business
Overview”.



Our four principal operating subsidiaries
are: (i) Banco de Crédito del Perú (which, together with its consolidated subsidiaries, is referred to as BCP); (ii)
Atlantic Security Bank, which we hold through Atlantic Security Holding Corporation (which, are referred to as ASB and ASHC, respectively);
(iii) El Pacífico-Peruano Suiza Compañía de Seguros y Reaseguros (which together with its consolidated subsidiaries,
is referred to as Grupo Pacífico); and (iv) Prima AFP. BCP’s activities include wholesale banking, investment banking
and retail banking. As of and for the year ended December 31, 2011, BCP accounted for 87.4% of our total assets, 75.2% of our net
income and 69.3% of our net equity. Unless otherwise specified, the individual financial information for BCP, ASB, Grupo Pacífico
and Prima AFP included in this Annual Report has been derived from the audited consolidated financial statements of each such entity.
See “Item 3. Key Information—(A) Selected Financial Data” and “Item 4. Information on the Company—(A)
History and Development of the Company.” We refer to BCP, ASB, Grupo Pacífico and Prima AFP as our main operating
subsidiaries, and we refer to Grupo Crédito and ASHC as our two main holding subsidiaries.



“Item 3. Key
Information—(A) Selected Financial Data” contains key information related to our performance. This information was
obtained mainly from our consolidated financial statements as of December 31, 2007, 2008, 2009, 2010 and 2011.



Our management’s
criteria on foreign currency translation, for the purpose of preparing the Credicorp Consolidated Financial Statements, is described
in “Item 5. Operating and Financial Review and Prospects—(A) Operating Results—(1) Critical Accounting Policies—Foreign
Currency Translation.”



Some of our subsidiaries
maintain their operations and balances in Nuevos Soles. As a result, this Annual Report contains certain Nuevo Sol amounts translated
into U.S. Dollars which is solely for the convenience of the reader. You should not construe any of these translations as representations
that the Nuevo Sol amounts actually represent such equivalent U.S. Dollar amounts or could be converted into U.S. Dollars at the
rate indicated as of the dates mentioned herein, or at all. Unless otherwise indicated, these U.S. Dollar amounts have been translated
from Nuevos Soles at an exchange rate of S/.2.696 = US$1.00, which is the December 31, 2011 exchange rate set by the Peruvian Superintendencia
de Banca, Seguros y AFP (the Superintendency of Banks, Insurance and Pension Funds, or the SBS). The average of the bid and offered
free market exchange rates published by the SBS for April 20, 2012 was S/.2.651 per US$1.00. Translating amounts expressed in Nuevos
Soles on a specified date (at the prevailing exchange rate on that date) may result in the presentation of U.S. Dollar amounts
that are different from the U.S. Dollar amounts that would have been obtained by translating Nuevos Soles on another specified
date (at the prevailing exchange rate on that different specified date). See also “Item 3. Key Information—(A) Selected
Financial Data—Exchange Rates” for information regarding the average rates of exchange between the Nuevo Sol and the
U.S. Dollar for the periods specified therein. The Federal Reserve Bank of New York does not publish a noon buying rate for Nuevos
Soles. Our Bolivian subsidiary operates in Bolivianos, a currency that has been maintained stable over recent years. Our Bolivian
subsidiary ́s financial statements are also presented in U.S. Dollars.



4







CAUTIONARY
STATEMENT WITH RESPECT TO
FORWARD-LOOKING STATEMENTS



Certain statements contained in this Annual
Report are not historical facts, including, without limitation, certain statements made in the sections entitled “Item 3.
Key Information,” “Item 4. Information on the Company,” “Item 5. Operating and Financial Review and Prospects”
and “Item 11. Quantitative and Qualitative Disclosures about Market Risk,” which are forward-looking statements within
the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934 (or the
Exchange Act). These forward-looking statements are based on our management’s current views and assumptions and involve known
and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed
or implied in the forward-looking statements. Therefore, actual results, performance or events may be materially different from
those in the forward-looking statements due to, without limitation:



| | • | general economic conditions, including in particular economic conditions in Peru;
| | - | ---------------------------------------------------------------------------------



| | • | performance of financial markets, including emerging markets;
| | - | -------------------------------------------------------------



| | • | the frequency and severity of insured loss events;
| | - | --------------------------------------------------



| | • | interest rate levels;
| | - | ---------------------



| | • | currency exchange rates, including the Nuevo Sol/U.S. Dollar exchange rate;
| | - | ---------------------------------------------------------------------------



| | • | increasing levels of competition in Peru and other emerging markets;
| | - | --------------------------------------------------------------------



| | • | changes in laws and regulations;
| | - | --------------------------------



| | • | changes in the policies of central banks and/or foreign governments; and
| | - | ------------------------------------------------------------------------



| | • | general competitive factors, in each case on a global, regional and/or national basis.
| | - | --------------------------------------------------------------------------------------



See “Item 3. Key Information—(D)
Risk Factors,” and “Item 5. Operating and Financial Review and Prospects.”



We are not under any obligation to, and
we expressly disclaim any obligation to, update or alter any forward-looking statements contained in this Annual Report whether
as a result of new information, future events or otherwise.



5







PART I



| | ITEM 1. | IDENTITY OF
                                                                                 DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
| | ------- | --------------------------------------------------------------------------------------------------------------------------------------



Not applicable



| | ITEM 2. | OFFER STATISTICS
                                                                                 AND EXPECTED TIMETABLE
| | ------- | ------------------------------------------------------------------------------------------------------------------------



Not applicable.



| | ITEM 3. | KEY INFORMATION
| | ------- | ---------------



| | (A) | Selected Financial Data
| | --- | -----------------------



The following table
presents a summary of our consolidated financial information at the dates and for the periods indicated. This selected financial
data is presented in U.S. Dollars. You should read this information in conjunction with, and qualify this information in its entirety
by reference to, the Consolidated Financial Statements, which are also presented in U.S. Dollars.



The summary of our
consolidated financial data as of, and for the years ended, December 31, 2007, 2008, 2009, 2010 and 2011 is derived from the Consolidated
Financial Statements audited by Medina, Zaldívar, Paredes & Asociados S.C.R.L, member of Ernst & Young Global, independent
registered public accountants.



The report of Medina,
Zaldívar, Paredes & Asociados S.C.R.L on the Consolidated Financial Statements as of December 31, 2010 and 2011 and
for the years ended December 31, 2009, 2010 and 2011 appears elsewhere in this Annual Report.



6







SELECTED FINANCIAL DATA



|                                                                               |  | Year ended December 31,                                 |           
|------------------------------------------------------------------------------ |  | ------------------------------------------------------- | ----------
|                                                                               |  | 2007                                                    |           
|                                                                               |  | (U.S. Dollars in thousands, except percentages, ratios, |           
|                                                                               |  | and per common share data)                              |           
|INCOME STATEMENT DATA:                                                         |  |                                                         |           
|IFRS:                                                                          |  |                                                         |           
|Interest income                                                                |  | US$                                                     | 1,065,339 
|Interest expense                                                               |  |                                                         | (431,365  
|Net Interest income                                                            |  |                                                         | 633,974   
|Provision for loan losses  (1)                                                 |  |                                                         | (28,439   
|Net interest income after provision for loan losses                            |  |                                                         | 605,535   
|Fees and commissions from banking services                                     |  |                                                         | 324,761   
|Net gains (loss) from sales of securities                                      |  |                                                         | 46,376    
|Net gains on foreign exchange transactions                                     |  |                                                         | 61,778    
|Net premiums earned                                                            |  |                                                         | 297,272   
|Other income                                                                   |  |                                                         | 90,022    
|Claims on insurance activities                                                 |  |                                                         | (238,600  
|Operating expenses                                                             |  |                                                         | (747,089  
|Merger costs                                                                   |  |                                                         | 0         
|Income before translation result and income tax                                |  |                                                         | 440,055   
|Translation result                                                             |  |                                                         | 34,627    
|Income tax                                                                     |  |                                                         | (102,287  
|Net income                                                                     |  |                                                         | 372,395   
|Attributable to:                                                               |  |                                                         |           
|Net income attributable to Credicorp’s equity holders                          |  |                                                         | 350,735   
|Minority interest                                                              |  |                                                         | 21,660    
|Number of shares as adjusted to reflect changes in capital                     |  |                                                         | 79,761,475
|Net income per common share attributable to Credicorp’s equity
    holders (2) |  |                                                         | 4.40      
|Diluted net income per share                                                   |  |                                                         | 4.40      
|Cash dividends declared per common share                                       |  |                                                         | 1.50      
|BALANCE SHEET DATA:                                                            |  |                                                         |           
|IFRS:                                                                          |  |                                                         |           
|Total assets                                                                   |  |                                                         | 17,705,898
|Total loans (3)                                                                |  |                                                         | 8,183,845 
|Reserves for loan losses (1)                                                   |  |                                                         | (229,700  
|Total deposits                                                                 |  |                                                         | 11,299,671
|Equity attributable to  Credicorp’s equity holders                             |  |                                                         | 1,676,009 
|Minority interest                                                              |  |                                                         | 139,264   
|Net Equity                                                                     |  |                                                         | 1,815,273 



|                                                                                             |  | Year ended December 31,                                                            |       
|-------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------- | ------
|                                                                                             |  | 2007                                                                               |       
|                                                                                             |  | (U.S. Dollars in thousands, except percentages, ratios, and per common share data) |       
|SELECTED RATIOS                                                                              |  |                                                                                    |       
|IFRS:                                                                                        |  |                                                                                    |       
|Net interest margin (4)                                                                      |  |                                                                                    | 4.50  
|Return on average total assets (5)                                                           |  |                                                                                    | 2.29  
|Return on average equity attributable to Credicorp’s equity holders (6)                      |  |                                                                                    | 22.67 
|Operating expenses as a percentage of net interest and non-interest income (7)               |  |                                                                                    | 50.62 
|Operating expenses as a percentage of average assets                                         |  |                                                                                    | 4.88  
|Equity attributable to Credicorp’s equity holders as a percentage of period end total assets |  |                                                                                    | 9.47  
|Regulatory capital as a percentage of risk weighted assets (8)                               |  |                                                                                    | 12.80 
|Total past-due loan amounts as a percentage of total loans (9)                               |  |                                                                                    | 0.75  
|Reserves for loan losses as a percentage of total loans                                      |  |                                                                                    | 2.58  
|Reserves for loan losses as a percentage of total loans  and other contingent credits (10)   |  |                                                                                    | 2.17  
|Reserves for loan losses as a percentage of total past-due loans (11)                        |  |                                                                                    | 343.68
|Reserves for loan losses as a percentage of substandard loans (12)                           |  |                                                                                    | 100.45



7







(1)         Provision
for loan losses and reserve for loan losses include provisions and reserves with respect to total loans and contingent credits,
net of write-off recoveries.



(2)         We
have 100 million authorized common shares. As of December 31, 2011, we had 94.4 million common shares issued and outstanding, of
which 14.6 million were held by ASHC. The per common share data given considers net outstanding shares (common shares net of shares
held by BCP, ASHC and PPS) of 79.7 million in 2002 to 2011. See Notes 16 and 25 to the Consolidated Financial Statements.



As of As of December
31, 2011, the Group had granted 549,529 shares of Credicorp as part of its stock awards compensation program, of which 333,294
shares were outstanding.



(3)         Net
of unearned interest, but prior to reserve for loan losses. In addition to loans outstanding, we had contingent loans of US$1,455.4
million, US$1,564.5 million, US$1,755.9 million, US$2,528.1 million, US$3,135.2 million and US$3,728.0 million, as of December
31, 2007, 2008, 2009, 2010 and 2011, respectively. See Note 19 to the Consolidated Financial Statements.



(4)         Net
interest income as a percentage of average interest-earning assets, computed as the average of period-beginning and period-ending
balances on a monthly basis.



(5)         Net
income as a percentage of average total assets, computed as the average of period-beginning and period-ending balances.



(6)         Net
income as a percentage of average equity attributable to our equity holders, computed as the average of period-beginning and period-ending
balances, and calculated on a monthly basis.



(7)         Sum
of the salaries and employee’s benefits, administrative expenses, depreciation and amortization, as a percentage of the sum
of net interest income and non-interest income, less net gains from sales of securities and other income.



(8)         Regulatory
capital calculated in accordance with guidelines by the Basel Committee on Banking Regulations and Supervisory Practices of International
Settlements (or the BIS I Accord) as adopted by the SBS. See “Item 5. Operating and Financial Review and Prospects—(B)
Liquidity and Capital Resources—Regulatory Capital and Capital Adequacy Ratios.”



(9)         Depending
on the type of loan, BCP considers loans past due for corporate, large business and medium business loans after 15 days; for small
and micro business loans after 30 days; and for consumer, mortgage and leasing loans after 90 days. ASB considers past due all
overdue loans except for consumer loans, which are considered past due when the scheduled principal and/or interest payments are
overdue for more than 90 days. For IFRS 7 disclosure requirements on past-due loans, See Note 29.1 to the Consolidated Financial
Statements. See “Item 4. Information on the Company—(B) Business Overview—(12) Selected Statistical Information—(iii)
Loan Portfolio—Classification of the Loan Portfolio Based on the Borrower’s Payment Performance.”



(10)        Other
contingent credits primarily consist of guarantees, stand-by letters and letters of credit. See Note 19 to the Consolidated Financial
Statements.



(11)        Reserves
for loan and contingent credit losses, as a percentage of all past-due loans, with no reduction for collateral securing such loans.
Reserves for loan and contingent credit losses include reserves with respect to total loans and other credits.



(12)        Reserves
for loan and contingent credit losses as a percentage of loans classified in categories C, D or E. See “Item 4. Information
on the Company—(B) Business Overview—(12) Selected Statistical Information—(iii) Loan Portfolio—Classification
of Loan Portfolio.”



Exchange Rates



The following table sets forth the high
and low month-end rates and the average and end-of-period rates for the sale of Nuevos Soles for U.S. Dollars for the periods indicated.



|Year ended December 31, |  |  | High (1)                               |  |  |  | Low (1) |  |  |  | Average (2) |  |  |  | Period-end(3) | 
|----------------------- |  |  | -------------------------------------- |  |  |  | ------- |  |  |  | ----------- |  |  |  | ------------- | 
|                        |  |  | (Nominal Nuevos Soles per U.S. Dollar)
|2007                    |  |  | 3.197                                  |  |  |  | 2.998   |  |  |  | 3.125       |  |  |  | 2.998         | 
|2008                    |  |  | 3.135                                  |  |  |  | 2.751   |  |  |  | 2.939       |  |  |  | 3.135         | 
|2009                    |  |  | 3.258                                  |  |  |  | 2.853   |  |  |  | 3.010       |  |  |  | 2.889         | 
|2010                    |  |  | 2.858                                  |  |  |  | 2.788   |  |  |  | 2.826       |  |  |  | 2.808         | 
|2011                    |  |  | 2.830                                  |  |  |  | 2.680   |  |  |  | 2.752       |  |  |  | 2.686         | 



8







Source: Bloomberg

| | (1) | Highest and lowest of the 12 month-end exchange rates for each year based on the offered rate.
| | --- | ----------------------------------------------------------------------------------------------

| | (2) | Average of month-end exchange rates based on the offered rate.
| | --- | --------------------------------------------------------------

| | (3) | End-of-period exchange rates based on the offered rate.
| | --- | -------------------------------------------------------



The following table sets forth the high
and low rates for the sale of Nuevos Soles for U.S. Dollars for the indicated months.



|                         |  | High (1)                               |       |  | Low (1) | 
|------------------------ |  | -------------------------------------- | ----- |  | ------- | 
|                         |  | (Nominal Nuevos Soles per U.S. Dollar) |      
|2011                     |  |                                        |       |  |         | 
|December                 |  |                                        | 2.704 |  |         | 
|2012                     |  |                                        |       |  |         | 
|January                  |  |                                        | 2.693 |  |         | 
|February                 |  |                                        | 2.688 |  |         | 
|March                    |  |                                        | 2.671 |  |         | 
|April (through April 20) |  |                                        | 2.666 |  |         | 

Source: Bloomberg



| | (1) | Highest and lowest of the daily closing exchange rates for each month based on the offered rate.
| | --- | ------------------------------------------------------------------------------------------------



The average of the bid and offered free
market exchange rates published by the SBS for April 20, 2012 was S/.2.651 per US$1.00.



| | (B) | Capitalization and Indebtedness
| | --- | -------------------------------



Not applicable.



| | (C) | Reasons for the Offer and Use of Proceeds
| | --- | -----------------------------------------



Not applicable.



| | (D) | Risk Factors
| | --- | ------------



Our businesses are
affected by many external and other factors in the markets in which we operate. Different risk factors can impact our businesses,
our ability to effectively operate and our business strategies. You should consider the risk factors carefully and read them in
conjunction with all the information in this document. You should note that the risk factors described below are not only risks
to consider. Rather, these are the risks that we currently consider material. There may be additional risks that we consider immaterial
or of which we are unaware, and any of these risks could have similar effects to those set forth below.



Our geographic
location exposes us to risk related to Peruvian political, social and economic conditions.



Most of BCP’s,
Grupo Pacífico’s and Prima AFP’s operations and customers are located in Peru. In addition, although ASB is
based outside Peru, most of its customers are located in Peru. Accordingly, our results of operations and financial condition are
dependent on the level of economic activity in Peru. Changes in economic or other policies of the Peruvian government, which has
exercised and continues to exercise a substantial influence over many aspects of the private sector could affect our results of
operations and financial condition. Similarly, other political, economic and social developments in Peru, including government-influenced
effects on inflation, currency devaluation and economic growth could affect our operations and financial condition.



9







For several decades,
Peru had a history of political instability that has included military coups and a succession of regimes with differing policies
and programs. During the last 15 years, however, Peru has experienced a period of relative political and economic stability which
has led to positive economic performance, including a GDP compounded annual growth rate of 5.8% for the last ten years (2002 to
2011). The government of Alberto Fujimori, who took office in July 1990, initiated a series of reforms aimed at: (i) stabilizing
the economy, (ii) restructuring the national government (by reducing bureaucracy), (iii) privatizing state-owned companies, (iv)
promoting private investment, (v) eradicating corruption and bribery in the judicial system, (vi) developing and strengthening
free markets, (vii) institutionalizing democratic representation; and (viii) enacting programs designed to strengthen basic services
related to education, health, housing and infrastructure. While serving his third term, President Fujimori was forced to call for
general elections under extreme protest in July 2000when corruption in his government was exposed to the public. Fujimori later
resigned in favor of a transitory government. In April of 2009, following a 15-month trial in Lima, Fujimori was sentenced to 25
years in prison for violations of human rights in connection with government-linked death squads. The two administrations that
followed the Fujimori administration, after the transitional government led by Valentin Paniagua (2000-2001), were the Toledo administration
(2001-2006) and the García administration (2006-2011). Both governments followed similar economic policies, which focused
on achieving sustained economic growth; increasing exports of Peruvian goods; reducing unemployment, underemployment and poverty;
reforming the tax system; fostering private investment and increasing public investment in education, public health and other social
programs, while reducing overall public spending.



Peru’s current
president, Ollanta Humala from the Gana Perú political coalition, took office on July 28, 2011. As part of his economic
policies, President Humala has named Harvard University trained economist Luis Miguel Castilla as economy minister, Oscar Valdes
as prime minister, and Jorge Urquizo as production minister. President Humala has, since his inauguration, substantially maintained
the moderate economic policies of former president Alan García, whose administration was characterized by business-friendly
and open-market economic policies that sustained and fostered economic growth, while controlling the inflation rate at historically
low levels. However, we cannot assure you that the current or any future administration will maintain business-friendly and open-market
economic policies or policies that stimulate economic growth and social stability, in particular given President Humala’s
left-leaning political history and statements made during his presidential campaigns in 2006 and 2011. Any changes in the Peruvian
economy or the Peruvian government’s economic policies may have a negative effect on our business, financial condition and
results of operations.



Peru also has a history
of domestic terrorism and social unrest. The terrorist organizations that were particularly active in Peru during 1980s and the
early 1990s were the Movimiento Revolucionario Tupac Amaru (MRTA) and the Sendero Luminoso (Shining Path). The leader
of the Shining Path, Abimael Guzmán, was captured and imprisoned in 1992. In 2012, the most recent significant leader of
this organization, Florindo Flores, commonly known as Artemio, was also captured. Nevertheless, terrorism, narcotrafficking and
narco-terrorism remain key challenges for the Government. Remnants of the Shining Path rebel group have survived and the group
is now split into two relatively independent factions; one in Peru’s Upper Huallaga Valley and one in the Apurimac and Ene
River Valley (VRAE). These regions constitute the largest areas of coca cultivation and the main centers of “narco-terrorism”
in Peru. Any resumption in terrorist activity by the MRTA, the Shining Path or other organizations may adversely affect our operations
and financial condition.



In recent years, Peru
has experienced social unrest in geographic areas that contribute to the country’s mining industry. Mining is an important
sector of the Peruvian economy, representing approximately 60% of the country’s exports and 20% of its tax revenues. However,
while recent governments have concentrated on increasing the revenues and profitability of the mining industry, there has been
less focus on improving the social and economic conditions of local communities affected by the industry, which has increased political
tension. The most recent manifestation of this tension can be seen in social conflict around Conga, a gold-copper project located
in northern Peru. The project, which included investments of between US$4.2 billion and US$4.8 billion, failed to launch because
of social protests led by residents concerned about its potential impact on the local water supply. In December 2011, the Peruvian
government declared a state of emergency in the area, which lasted for approximately 10 days, and afterwards requested a new environmental
impact study from independent consultants. The results of the study were delivered on April 16, 2012, and the Peruvian government
has established a series of new conditions to improve the project that the mining company would be required to accept to continue
with the project. The final outcome will depend on the answer from the mining company. A possible cancellation of this project
may have an impact on present and future foreign investment decisions and plans, which in turn could negatively affect Peru’s
GDP growth and, as a result, the expansion of Peruvian financial system.



10







Foreign exchange
fluctuations and exchange controls may adversely affect our financial condition and results of operations.



Even though the functional
currency of our financial statements is U.S. Dollars and our dividends are paid in U.S. Dollars, BCP, Grupo Pacífico and
Prima AFP for local statutory purposes, prepare their financial statements and pay dividends in Nuevos Soles. The Peruvian government
does not impose restrictions on a company’s ability to transfer U.S. Dollars from Peru to other countries, to convert Peruvian
currency into U.S. Dollars or to pay dividends abroad. Nevertheless, Peru has implemented restrictive exchange controls in its
history, and the Peruvian government might in the future consider it necessary to implement restrictions on such transfers, payments
or conversions. See “Item 10. Additional Information—(D) Exchange Controls.” In addition, depreciation of the
Nuevo Sol against the U.S. Dollar would decrease the U.S. Dollar value of any dividends BCP, Grupo Pacífico and Prima AFP
pay us, which would have a negative impact on our ability to pay dividends to shareholders.



Peru’s foreign
reserves currently compare favorably with those of many other Latin American countries. However, a reduction in the level of foreign
reserves will impact the country’s ability to meet its foreign currency-denominated obligations. A decline in Peruvian foreign
reserves to inadequate levels, among other economic circumstances, could lead to currency devaluation or a volatility of short-term
capital inflows. We have taken steps to manage the gap between our foreign currency-denominated assets and liabilities in several
ways, including closely matching the volumes and maturities of our Nuevo Sol-denominated assets against our Nuevo Sol-denominated
liabilities. Nevertheless, a sudden and significant devaluation of the Nuevo Sol could have a material adverse effect on our financial
condition and results of operations. See “Item 11. Quantitative and Qualitative Disclosures about Market Risk—Foreign
Exchange Risk.”



Also, a significant
group of BCP’s borrowers and Grupo Pacífico’s insureds generate Nuevo Sol revenues from their own clients.
Devaluation of the Nuevo Sol against the U.S. Dollar could negatively impact BCP’s and Grupo Pacífico’s clients’
ability to repay loans or make premium payments. Despite any devaluation, and absent any change in foreign exchange regulations,
BCP and Grupo Pacífico would be expected to continue to repay U.S. Dollar-denominated deposits and U.S. Dollar-denominated
insurance benefits in U.S. Dollars. Therefore, any significant devaluation of the Nuevo Sol against the U.S. Dollar could have
a material adverse effect on our results of operations and financial condition.



It may be difficult
to serve process on or enforce judgments against us or our principals residing outside of the United States.



A significant majority
of our directors and officers live outside the United States (principally in Peru). All or most of our assets and those of our
principals are located outside the United States. As a result, it may not be possible for investors to effect service of process
within the United States upon us or our principals to bring forth a civil suit under the United States securities laws in United
States courts. We have been advised by our Peruvian counsel that liability under the United States federal securities laws may
not be enforceable in original actions in Peruvian courts. Also, judgments of United States courts obtained in actions under the
United States federal securities laws may not be enforceable. Similarly, Bermudan counsel advised us that courts in Bermuda may
not enforce judgments obtained in other jurisdictions, or entertain actions in Bermuda, against us or our directors or officers
under the securities laws of those jurisdictions.



In addition, our bye-laws
contain a broad waiver by shareholders of any claim or right of action, both individually and on our behalf, against any of our
officers or directors. This waiver limits the rights of shareholders to assert claims against our officers and directors for any
action taken by an officer or director. It also limits the rights of shareholders to assert claims against officers for the failure
of an officer or director to take any action in the performance of his or her duties, except with respect to any matter involving
any willful negligence, willful default, fraud or dishonesty on the part of the officer or director.



11







Our ability to
pay dividends to shareholders and to pay corporate expenses may be adversely affected by the ability of our subsidiaries to pay
dividends to us.



As a holding company,
our ability to make dividend payments, if any, and to pay corporate expenses will depend upon the receipt of dividends and other
distributions from our operating subsidiaries. Our principal operating subsidiaries are BCP, Grupo Pacífico, ASB and Prima
AFP. If our subsidiaries do not have funds available, or are otherwise restricted from paying us dividends, we may be limited in
our ability to pay dividends to shareholders. Currently, there are no restrictions on the ability of BCP, ASB, Grupo Pacífico
or Prima AFP to pay dividends abroad. In addition, our right to participate in the distribution of assets of any subsidiary, upon
any subsidiary’s liquidation or reorganization (and thus the ability of holders of our securities to benefit indirectly from
such distribution), is subject to the prior claims of creditors of that subsidiary, except where we are considered an unsubordinated
creditor of the subsidiary. Accordingly, our securities will effectively be subordinated to all existing and future liabilities
of our subsidiaries, and holders of our securities should look only to our assets for payments.



Changes to banking
regulations may adversely affect our operating performance and financial condition.



Because we are subject
to regulation and supervision in Peru, Bolivia, the Cayman Islands, the United States of America, and Panama, changes to the regulatory
framework in any of these countries or changes in tax laws could adversely affect our business.



We are mainly subject
to extensive supervision and regulation through the SBS’s consolidated supervision regulations, which regulate all of our
subsidiaries and offices including those located outside Peru. The SBS and the Banco Central de Reserva, or the Central Bank, supervise
and regulate BCP’s operations. Peru’s constitution and the SBS’s statutory charter grant the SBS the authority
to oversee and control banks and other financial institutions including pension funds and insurance companies. The SBS and the
Central Bank have general administrative responsibilities over BCP, including designation of capitalization and reserve requirements.
In past years, the Central Bank has, on numerous occasions, changed the deposit reserve requirements applicable to Peruvian commercial
banks as well as the rate of interest paid on deposit reserves and the amount of deposit reserves on which no interest is payable
by the Central Bank. Such changes in the supervision and regulation of BCP may adversely affect our results of operations and financial
condition. See “Item 4. Information on the Company—(B) Business Overview—(11) Supervision and Regulation—(ii)
BCP.” Furthermore, changes in regulation related to consumer protection may also affect our business.



We are also regulated
by the United States Federal Reserve System, which shares its regulatory responsibility with the State of Florida Department of
Banking and Finance - Office of Financial Regulation, with respect to BCP’s Miami agency, and by the Securities and Exchange
Commission (SEC) and the Financial Industry Regulatory Authority, Inc. (FINRA), with respect to Credicorp Securities, a U.S. broker
dealer. Similarly, we are regulated by other governmental entities in other jurisdictions. In the Cayman Islands, we are subject
to the supervision and regulation of the Cayman Islands Monetary Authority, or CIMA, while in Bolivia, we are subject to the supervision
of the Financial System Supervisory Authority (or FSSA or ASFI in Spanish) that has assumed all regulatory functions held previously
be the Superintendency of Banks and Financial Entities and the Superintendency of Pensions, Securities and Insurance. In Panama,
we are subject to the supervision of the Superintendency of Banks and the regulatory framework set forth in the Decree Law 9 of
February 25, 1998. Changes in the supervision and regulation of our subsidiaries in other countries may adversely affect our results
of operations and financial condition.



In mid-2011, politicians
outside of Peru's governing coalition introduced a bill in Congress that, if enacted, would set a cap on interest rates charged
by the country's financial institutions. However, the SBS recently indicated that such a cap should only be used as a last resort
for lowering rates if the SBS doesn’t succeed in getting Peru’s banks to voluntarily reduce interest rates in the next
two to four years, the period in which several foreign banks are likely to establish or expand operations in Peru. Congress may
nevertheless impose a cap, and an interest rate ceiling may adversely affect our Net Interest Margin (NIM) and consequently our
operating performance.



12







On February 15, 2011,
the Peruvian government enacted Law 29663. On July 21, 2011 Law 29663 was amended by Law 29757. This new Law partially modifies
the country’s income tax regime by subjecting to taxation in Peru capital gains derived from an indirect transfer of shares
and expanding the type of income that will qualify as Peruvian-source income. Under the new law, any transfer of shares issued
by a non-resident entity will be subject to taxation in Peru (30% or 5%) if at any point during the 12 prior months to such transfer:



a.   50% or more of the fair market value
of the foreign shares –to be transferred—is derived from shares or participation rights representing the equity capital
of one or more Peruvian entities. There is a rebuttable presumption that the threshold is met if the non-resident entity is a resident
in a tax heaven.



b.   The shares to be transferred represent
at least 10% or more of the equity capital of the non-resident entity.



At the same time, two
new obligations were imposed on Peruvian domiciled companies:



(1)     Each Peruvian domiciled company is
now required to report to the Peruvian Tax Administration (SUNAT) transfers of its own shares or transfers of the shares of the
non-Peruvian domiciled company that is the owner of its shares; and



(2)     Each Peruvian domiciled company is
jointly liable for the income tax not paid by a non-Peruvian domiciled transferor that is directly or indirectly linked to the
domiciled company (whether by means of control, management or equity participation) in connection with the transfer of the domiciled
company’s shares, except in the event that the purchaser or acquirer of the shares is a Peruvian individual or entity.



The effectiveness of
the obligations mentioned in (1) and (2) above is subject to additional regulations which have not been enacted yet by the Peruvian
government. Until definitive regulations are enacted by the Peruvian government, which may clarify any obligation by Credicorp
to withhold income tax for non-Peruvian domiciled transferors, we do not know what impact, if any, this new law will have on our
company, subsidiaries or shareholders.



A deterioration
in the quality of our loan portfolio may adversely affect our results of operations.



Given that a significant
percentage of our revenues are related to banking activities, a deterioration of loan quality may have an adverse impact on our
financial condition and results of operations. On the one hand, loan portfolio risk associated with lending to certain economic
sectors or clients in certain market segments can be mitigated through adequate diversification policies. On the other hand, our
pursuit of opportunities in which we can charge higher interest rates, thereby increasing revenues, may reduce diversification
of our loan portfolio and expose us to greater credit risk. We believe that significant opportunities exist in middle market, consumer
lending and microfinance in Peru. We also believe that we can, on average, charge higher interest rates on such loans as compared
with interest charged on loans in our core corporate banking business, which primarily consists of clients that operate in industrial
and commercial economic sectors.



Accordingly, our strategy
includes a greater emphasis on middle market, consumer loans and microfinance, as well as continued growth of our loan portfolio
in general. An increase in our portfolio’s exposure to these areas could be accompanied by greater credit risk. Such a greater
credit risk would not only be affected by the speed and magnitude of the increase, but also by the shift to lending to these sectors,
which have higher risk profiles compared with loans to large corporate customers. Given the changing composition of our loan portfolio,
historical loss experience may not be indicative of future loan loss experience.



13







Our banking operations
in Bolivia expose us to risk related to Bolivian political and economic conditions.



Banco de Crédito
de Bolivia, or BCP Bolivia, is BCP’s commercial bank in Bolivia. Most of BCP Bolivia’s operations and customers are
located in Bolivia. Accordingly, our results of operations and financial conditions depend on the level of economic activity in
Bolivia. Bolivia’s macroeconomic indicators have been generally positive over the last several years, including steady growth
rates and increasing international reserves. Inflation closed with a rate of 6.9% in 2011, indicating that inflationary pressures
are easing due to decreases in international food prices and commodity prices. At the same time, Bolivia continues to experience
a volatile political environment and a reduction in private investment activity. We expect to face some increased costs as a result
of a government decree establishing wage increases indexed to the inflation rate, and also certain regulatory changes that could
impact our earnings. Another important issue is the Bolivian government announcement that during the first quarter of 2012 they
plan to approve a new law that applies a new tax burden on the financial system regulated by ASFI. Any institution with profits
exceeding 13% of return on equity will be taxed an additional 12.5%. In this environment, our strategy will be to control costs
and expenses, increase efficiency and maintain a prudent and proactive risk management. Any material negative effect on BCP Bolivia’s
operations or financial results could have a material adverse effect on Credicorp’s own results of operations.



Changes to insurance
regulations in Peru may impact the ability of our insurance subsidiary to underwrite and price risk effectively, and may adversely
affect our operating performance and financial condition.



Our insurance business
is carried out by Pacífico Seguros and Pacífico Vida which together with Pacíficosalud EPS S.A. are part of
Grupo Pacífico. The insurance business is subject to regulation by the SBS. New legislation or regulations may adversely
affect Grupo Pacífico’s ability to underwrite and price risks accurately, which in turn would affect underwriting
results and business profitability. Grupo Pacífico is unable to predict whether and to what extent new laws and regulations
that would affect its business will be adopted in the future. Grupo Pacífico is also unable to predict the timing of any
such adoption and the effects any new laws or regulations would have on its operations, profitability and financial condition.



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.



Our operating performance
and financial condition depend on Grupo Pacífico’s ability to underwrite and set premium rates accurately across a
full spectrum of risks. Grupo Pacífico must generate sufficient premiums to offset losses, loss adjustment expenses and
underwriting expenses in order to be profitable.



To price premium rates accurately, Grupo Pacífico
must:



| | • | collect and analyze a substantial volume of data;
| | - | -------------------------------------------------



| | • | develop, test and apply appropriate rating formulae;
| | - | ----------------------------------------------------



| | • | closely monitor changes in trends in a timely fashion; and
| | - | ----------------------------------------------------------



| | • | predict both severity and frequency with reasonable accuracy.
| | - | -------------------------------------------------------------



If Grupo Pacífico
fails to assess accurately the risks that it assumes or does not accurately estimate its retention, it may fail to establish adequate
premium rates. Failure to establish adequate premium rates could reduce income and have a materially adverse effect on its operating
results or financial condition. Moreover, there is inherent uncertainty in the process of establishing property and casualty loss
reserves. Reserves are estimates based on actuarial and statistical projections at a given point in time of what Grupo Pacífico
ultimately expects to pay out on claims and the cost of adjusting those claims, based on the facts and circumstances then known.
Factors affecting these projections include, among others, changes in medical costs, repair costs and regulation. Any negative
effect on Grupo Pacífico could have a material adverse effect on our results of operations and financial condition.



14







Regulatory changes
to the private pension fund system in Peru could impact our earnings and adversely affect our operating performance.



Prima AFP manages our
Pension Fund Administration business. In Peru, private pension fund managers are closely regulated by the SBS. Under the current
regulatory framework, we collect commissions based on the salary of each subscriber to our pension funds. This commission-based
system could be modified or eliminated by regulations. There are some options that are under analysis by a Commission such as fees
based on the balance of funds under management by pension fund managers. Any regulations requiring us to use a different methodology
to calculate fees could negatively impact our performance.



In October 2011, the
Ministry of Finance named a Technical Committee to propose changes in regulation to increase private pension fund system coverage
and promote competition. This Committee will present its findings to the Ministry, who will in turn propose regulatory changes
that should be approved by Congress. These changes in regulation could negatively affect our performance, results of operating
and financial condition.



Recent legislation
regarding the financial services industry may subject us to significant and extensive regulation, which may have an impact on our
operations.



Government measures
to regulate the financial industry, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act)
and the Foreign Account Tax Compliance Act (FATCA) of the United States, are likely to increase our regulatory compliance burden
and related costs. These and other regulatory developments are likely to impact Credicorp, and may require us to change certain
aspects of our business practices and impose additional costs on us ultimately having an impact on our operations.



We operate in
a competitive banking environment that may limit our potential to grow, particularly in the medium term as more foreign banks establish
or expand operations in Peru.



BCP has experienced
increased competition, including increased pressure on margins. This is primarily a result of the presence of the following:



| | • | Highly liquid commercial banks in the market;
| | - | ---------------------------------------------



| | • | Local and foreign investment banks with substantial capital, technology, and marketing resources; and
| | - | -----------------------------------------------------------------------------------------------------



| | • | Local pension funds that lend to BCP’s corporate customers through participation in those customers’ securities
issues.
| | - | -----------------------------------------------------------------------------------------------------------------------



Larger Peruvian companies
have gained access to new sources of capital through the local and international capital markets, and BCP’s existing and
new competitors have increasingly made inroads into the higher margin, middle market and retail banking sectors. Such increased
competition, with entrants who may have greater access to capital at lower costs, has affected BCP’s loan growth as well
as reduced the average interest rates that BCP can charge its customers.



Competitors may also
dedicate greater resources to, and be more successful in, the development of technologically advanced products and services that
may compete directly with BCP’s products and services. Such competition would adversely affect the acceptance of BCP’s
products and/or lead to adverse changes in the spending and saving habits of BCP’s customer base. If competing entities are
successful in developing products and services that are more effective or less costly than the products and services developed
by BCP, BCP’s products and services may be unable to compete successfully. BCP may not be able to maintain its market share
if it is not able to match its competitors’ loan pricing or keep pace with their development of new products and services.
Even if BCP’s products and services prove to be more effective than those developed by other entities, such other entities
may be more successful in marketing their products and services than BCP because of their greater financial resources, higher sales
and marketing capacity or other similar factors.



15







As a result of strong
Peru’s economic growth, which has outpaced growth by nearby countries, several banks have sought and obtained authorization
to open representative offices in Peru. Itaú Unibanco, Banco Latinoamericano de Comercio Exterior (Bladex), Morgan Stanley
Bank and Bank of Tokyo are among those banks receiving authorization. With the increased competition, more individuals will have
access to credit, and the percentage of the population using baking services will likely climb. This will eventually put downward
pressure on interest rates. Any negative impact on BCP could have a materially adverse effect on our results of operations and
financial condition.



Fluctuation and
volatility of capital markets and interest rates may decrease our net income.



We may suffer losses
related to the investments by BCP, ASCH, Grupo Pacífico, Grupo Crédito (a wholly-owned subsidiary of Credicorp) and
other subsidiaries in fixed income and equity securities, and to their respective positions in currency markets, because of changes
in market prices, defaults, fluctuations in market interest rates or exchange rates or other reasons. A downturn in capital markets
may result in a decline in the value of our positions and lead us to register net losses. In addition, a downturn in capital markets
could also lead to volatile prices and negative net revenues from trading positions, even in the absence of a general economic
downturn.



Fluctuations in market
interest rates, or changes in the relative structure between short-term interest rates and long-term interest rates, could cause
a decrease in interest rates charged on interest-earning assets, relative to interest rates paid on interest-bearing liabilities.
Such an occurrence could adversely affect our financial condition by causing a decrease in net interest income.



| | ITEM 4. | INFORMATION
                                                                                        ON THE COMPANY
| | ------- | ------------------------------------------------------------------------------------------------------------------



| | (A) | History and Development of the Company
| | --- | --------------------------------------



We are a limited liability
company that was incorporated in Bermuda on October 20, 1995 to act as a holding company, coordinate the policy and administration
of our subsidiaries, and engage in investing activities. Our principal activity is to coordinate and manage the business plans
of our subsidiaries in an effort to implement universal banking services and develop our insurance business, focusing on Peru and
Bolivia along with limited investments in other countries of the region. Our registered address is Clarendon House, 2 Church Street,
Bermuda. The management and administrative office (i.e., principal place of business) in Peru of our subsidiary, Banco de Crédito
del Perú, is located at Calle Centenario 156, La Molina, Lima 12, Peru, and the phone number is 51-1-313-2000.



As of December 31,
2011, our total assets were US$30.7 billion and our net equity was US$3.5 billion. Our net income attributable to our equity holders
in 2010 and 2011 was US$571.3 million and US$709.3 million, respectively. See “Item 3. Key Information—(A) Selected
Financial Data” and “Item 5. Operating and Financial Review and Prospects.”



We were formed in 1995
for the purpose of acquiring, through an exchange offer, the common shares of BCP, ASHC and PPS. We currently hold 97.7% of BCP,
97.7% of PPS and 100% of ASHC. See “Item 4. Information on the Company—(C) Organizational Structure.”



In February 2005, we
were authorized by Peruvian regulatory authorities to establish Prima AFP, of which Grupo Crédito is the main shareholder.
Prima AFP started operations in August 2005.



16







In August 2006, Prima
AFP acquired Unión Vida AFP, which is a pension fund operating in the Peruvian market. Prima AFP’s acquisition of
Unión Vida AFP, which was formerly held by Grupo Santander Perú S.A., was a strategic move toward consolidation as
part of its efforts to gain a leading position in the pension fund market. As of the date of the acquisition, Prima AFP was the
second largest pension fund company in terms of market share terms (defined as the amount of affiliates and assets under corporate
management), with the second highest returns and the lowest commission for affiliates (who invest a portion of their salary each
month). The merger between Prima AFP and Unión Vida AFP was consummated in December 2006.



In October 2009, BCP
acquired from the Cooperative for Assistance and Relief Everywhere Inc. (CARE) – Perú, all the shares that this entity
owned of Empresa Financiera Edyficar S.A. (Edyficar), representing 77.12% of Edyficar’s capital stock. In accordance with
Peruvian legal requirements in effect at the time, BCP made a public offering to Edyficar’s minority shareholders to acquire
the remaining 22.67% of the company’s stock. The total purchase price for the acquisition was US$96.1 million, including
related direct acquisition costs. As of December 31, 2011 BCP owned 99.79% of Edyficar.



In October 2010, the
Credicorp group acquired American Life Insurance Company (ALICO)’s 20.1% and 38% stakes in PPS and Pacífico Vida,
respectively. Pacífico Vida’s shares were acquired through Credicorp Ltd. and its subsidiary, Grupo Credito, acquired
PPS ́s shares. Consequently, at the conclusion of this transaction, Credicorp and its subsidiary Grupo Credito held 97.68%
of Pacífico Seguros, and jointly controlled 100% of Pacífico Vida. The total investment amounted to approximately
US$174 million, making it the largest transaction ever completed in the Peruvian insurance market. We expect the acquisition to
permit the Credicorp group to realize synergies in its decision making process and through the integration of all its insurance
business lines. The closer proximity between companies will also allow Grupo Pacífico to improve its value proposition to
customers, who seek integral insurance solutions. On April 28, 2011, Credicorp transferred its 24% stake in Pacífico Vida
to PPS. As a result of that transfer, PPS now directly owns 86% of the shares of Pacífico Vida and Credicorp owns the remaining
14%. This transfer did not affect Credicorp’s consolidated financial statements.



In November 2010, Credicorp’s
Board of Directors approved the transfer of 84.9% of BCP’s total shares to Grupo Crédito S.A. (its Peruvian wholly
owned subsidiary) through a capital contribution, in order to facilitate Credicorp’s future investments in Peru without modifying
the controlling structure of BCP. Under the new structure, Credicorp directly holds 12.7% of BCP’s total shares and, in conjunction
with its subsidiary Grupo Crédito, continues to control the same 97.7% of such shares without modifying the internal governance
structure. Before this change in ownership structure, dividends to Credicorp from its Peruvian subsidiaries, such as BCP, were
remitted abroad and had to be remitted back to Peru when capital for new investments in the country were required. With the new
structure, Grupo Crédito, which acts as the local holding company for some of Credicorp’s investments in Peru (Prima
AFP, Grupo Pacífico and others), will manage Credicorp’s future Peruvian investments, and directly transfer the dividends
to Credicorp when it is required to do so under Credicorp’s dividend policy. This modified organizational structure will
not affect the way Credicorp and BCP manage their day-to-day operations, and Credicorp’s dividend policy has not changed
as a result of this transaction.



In the second half
of 2011, Pacíficosalud EPS invested approximately US$ 82.7 million to create the largest private medical services network
in Peru by acquiring majority shares to directly manage: (i) the El Golf, San Borja and Oncocare clinics in Lima, (ii) the Galeno
clinic in Arequipa, (iii) Laboratorios ML, a clinical laboratory, and (iv) Doctor+, which is a house call/ambulance service. We
believe that these acquisitions enable Pacificosalud EPS to directly benefit from this sector’s growth and to strategically
defend against potential changes in the healthcare service supply chain, where vertical integration in the insurance business is
becoming more frequent.



On November 30, 2011,
Credicorp, through its subsidiary BCP, reached an agreement 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.
To date the acquisition was approved by the relevant regulatory authorities in Colombia and Peru and the precedent conditions were
fulfilled. Hence the settlement of the transaction will take place in the upcoming days.



Also Credicorp, 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 60.6 percent stake in such entity for an amount that represents approximately 3.5% of
Credicorp’s net equity and that will be finally defined subject to the completion of a due diligence process and approval
from the supervisors in Chile and Peru, among other precedent conditions.



17







| | (B) | Business Overview
| | --- | -----------------



| | (1) | Introduction – Review of 2011
| | --- | -----------------------------



General



We are the largest
financial services holding company in Peru. For management purposes, the Group is organized into four operating segments based
on our products and services. According to IFRS, an operating segment is a component of an entity that engages in business activities
from which it may earn revenues and incur expenses; whose operating results are regularly reviewed by the entity’s chief
who makes decisions about resources allocated for the segment and assesses its performance; and for which discrete financial information
is available. We conduct our financial services business through our operating segments as follows:



Banking: principally
handling loans, credit facilities, deposits and current accounts, and providing investment banking services, including corporate
finance, both for corporate and institutional customers. Banking also includes handling deposits, consumer loans and credit cards
products for individual customers.



Insurance: including
commercial property, transportation and marine hull, automobile, life, health and pension fund underwriting insurance. Private
hospital services are also included under this operating segment.



Pension funds: providing
private pension fund management services to customers.



Brokerage and other:
including the structuring and placement of primary market securities issues and the execution and trading of secondary market transactions.
This segment also includes offers of local securitization structuring to corporate entities, management of mutual funds and other
services.



The following table
provides certain financial information about our principal business segments as of and for the year ended December 31, 2011 (See
Note 26 to the Consolidated Financial Statements):



|                       |  | As of and for the Year ended December 31, 2011 |                           
|---------------------- |  | ---------------------------------------------- | --------------------------
|                       |  | Total                                          |                           
|                       |  | Revenues                                       |                           
|                       |  |                                                | (U.S. Dollars in millions)
|Banking                |  | US$                                            | 2,391                     
|Insurance              |  |                                                | 682                       
|Pension fund           |  |                                                | 106                       
|Brokerage and others   |  |                                                | 72                        
|Credicorp              |  | US$                                            | 3,251                     
|Asset Under Management |  |                                                | -                         



We conduct our wholesale
banking, treasury and retail banking activities primarily through BCP, the largest (in terms of total assets, loans, deposits,
net equity and net income) full-service Peruvian commercial bank, and our ASB private banking and asset management firm. We conduct
our pension fund business through Prima AFP and our insurance activities through Grupo Pacífico, which is the second largest
Peruvian insurance company in terms of premiums, fees and net income. It should be noted that the term “Peruvian commercial
bank,” “Peruvian insurance company” and other similar terms used in this Annual Report do not include the assets,
results or operations of any foreign parent company or foreign subsidiary of such Peruvian company.



Primarily as a result
of the strong microeconomic environment in Perú in 2011, we recorded net income after minority interests of US$709.3 million,
which was 24.2% higher than our net income in 2010. This result reflected the strong performance of all our subsidiaries.



18







Our total assets grew
to US$30.7 billion as of December 31, 2011, an 8.2% increase from the US$28.4 billion in assets we held as of December 31, 2010.
Our increase in total assets was primarily a result of the continued growth of our loan portfolio, which grew by 21.3% in 2011
(compared to a growth of 24.2% in 2010, 9.9% in 2009 and 27.8% in 2008), in line with the expansion of the Peruvian economy, which
had GDP growth rate of 6.9% in 2011. Our past-due and under legal collection loan ratio was 1.50% at the end of 2011 (compared
to a ratio of 1.47% at the end of 2010 and 1.6% at the end of 2009). We had a coverage ratio of 200.6% (i.e., reserves for loans
as a percentage of past-due loans), and our return on average net equity (ROAE) increased to 22.9% in 2011 (compared to 21.3% in
2010).



Banking segment



BCP



BCP’s year-end
2011 net income totaled US$578.7 million, which resulted in a contribution to Credicorp of US$ 564 million. This earnings contribution
was 21.5% higher than the 2010 contribution (US$464.4 million) and was mainly a product of our improved net interest income which
was in turn attributable to an 18.1% increase in gross loans. As a result, BCP registered a ROAE of 27.6%.



The main drivers behind
BCP’s performance were:



•         the 25.3% increase in net interest
income, which was attributable to a 18.1% and a 22.0% growth in gross loans and average daily balances, respectively;



•         the 2.5% increase in non-financial
income due primarily to a 14.3% growth in fee income as well as a 33.1% increase in gains on foreign exchange transactions; and



•         translation gains of US$ 34.5
million following a 4% appreciation in the Nuevo Sol against the U.S. Dollar, which exceeded the US$23.3 million gain reported
in 2010.



Performance in these
areas enabled BCP to offset the company’s 22.6% increase in provisions and 11.7% increase in operating expenses. The increase
in provisions did not indicate a deterioration of portfolio quality and instead reflected the determination of provisions requirements
based on the upper limit of the range defined by IFRS compliant internal modeling of reserves.



The higher operating
expenses were a result of BCP’s greater administrative and general expenses and, to a lesser degree, higher salary expenses
and employee benefits. These higher operating expenses were exacerbated by the 4% appreciation of the Nuevo Sol against the U.S.
Dollar over the course of 2011, as a portion of BCP’s operating expenses are denominated in local currency.



BCP’s total assets
reached US$26.8 billion at the end of 2011, representing an increase of 5.8% over the previous year (US$25.3 billion). This increase
in total assets was a result of the 17.9% expansion of BCP’s loans net of provisions, which totaled US$16.4 billion at the
end of 2011. The loan portfolio constituted 61.2% of BCP’s total assets at the end of 2011. BCP’s total past-due loans
reached US$258.3 million (23.5% higher than the US$209.1 million registered in 2010) while refinanced and restructured loans increased
by 25.2%, from US$76.7 million in 2010 to US$96 million at the end of 2011. The composition of BCP’s loan portfolio in 2011
changed significantly. As of December 2011, the average daily balances in our retail banking operations accounted for 46.6% (compared
to 42% in December 2010) and wholesale banking operations accounted for 53.4% of BCP’s total portfolio (compared to 58% in
December 2010). This outcome is a result of BCP’s strategic focus on increased market penetration in middle and lower segments,
which are generally characterized by higher margins.



19







The average daily balances
of BCP’s wholesale banking loans grew by 11.8% in 2011 as a result of the financing provided for large investments, inventories
and working capital to keep pace with Peru’s dynamic economy. As a result, BCP continued to lead the Peruvian financial system
with a market share of 44.3% for the corporate segment (46.5% in 2010) and 34.3% for the middle market (34.1% in 2010).



BCP’s retail
banking portfolio continued its upward trend and grew 35% in 2011. In terms of growth and yields, BCP’s small and medium
enterprise (SME) loans were its best performing product, growing by 40.1% (measured in average daily balances) to a total volume
of US$3.1 billion, followed by credit cards which grew 39.5% to US$809 million, in each case as of December 31, 2011. Consumer
loans grew 34.3% to US$1.3 billion, while mortgages expanded 28.2%, totaling US$2.5 billion.



On the liabilities
side, BCP’s deposits reached US$17.6 billion on December 31, 2011 (a 4.5% increase from the previous year). This increase
in deposits not only continues to reinforce BCP’s funding structure, as deposits account for 71.8% of all funding sources,
but it also serves to maintain BCP’s status as an industry leader with a market share of 31.6%. It is important to note that
core deposits grew while time deposits fell 25.8%, a dynamic which favor cost of funds for BCP. Demand deposits were BCP’s
largest deposit type, totaling US$6.3 billion as of December 31, 2011. Savings deposits, BCP’s second-largest deposit type,
reached US$5.1 billion. Time deposits totaled US$4.2 billion while Severance Accounts, or CTS, totaled US$1.8 billion.



BCP’s issuance
of bonds gained greater relevance within the funding structure. In March, 2011, BCP completed a second international issuance of
benchmark sized corporate bonds for US$700 million. Additionally, in September 2011, we conducted BCP’s largest
subordinated bond issuance to date for US$350 million. This transaction was entered into in order to fully align BCP with the new
capital requirements established by local regulators pursuant to Basel III, which go into effect in July 2012. As of December 31,
2011, the aggregate outstanding principal amount of BCP’s bonds totaled US$3,122 million (59.3% higher than the level registered
in 2010).



BCP maintains adequate
provisioning and long-term risk management policies. Its coverage ratio increased from 198.5% in 2010 to 200.8% in 2011. Total
cumulative provisions reached US$518.9 million as of December 31, 2011, which is 25.1% higher than provisions in the previous year.



In 2011, BCP continued
to focus its strategy on strengthening its customer service, which is related to its goal of providing quality and widespread customer
access to the financial system and thereby increasing the company’s penetration into the market. In following its network
expansion plan, BCP focused on cost-efficient channels, opening ATMs and Agentes BCP locations, which grew by 28.1% and 33%, respectively.
By the end of 2011, BCP had a total of 1,485 ATMs and 4,674 Agentes BCP locations, which are BCP representatives located in retail
establishments, such as grocery and drug stores. As a result of this strategy, BCP’s average number of transactions in 2011
increased 21.3% compared to 2010 and its transactional business was therefore able to generate higher income from fees and commissions.



Overall, BCP’s
results met our expectations and remained profitable in line with the growth of Peruvian economy, which posted a 6.9% GDP growth
in 2011 despite internal concerns about the presidential elections in the first half of 2011 and uncertainty concerning the global
economy during the second half of the year.



BCP Bolivia



In 2011, BCP Bolivia
had a net income of US$22.3 million, a 41% increase from its 2010 net income of US$15.8 million. This increase was primarily attributable
to growth in interest income, growth in BCP Bolivia’s loan portfolio and a 38% increase in gains on foreign exchange transactions.



In 2011, BCP Bolivia
maintained its position as one of the leading banks in Bolivia. In each of the following categories, the bank either outperformed
or equaled the industry average in the Bolivian banking system: return on average equity (22.3%), past-due loan ratio (1.2%) and
coverage ratio (314%) (as compared to industry averages of 20.2%, 1.7% and 281.1%, respectively).



20







BCP Bolivia’s
loan portfolio expanded by 26% from 2010, totaling US$758 million in 2011. This expansion was mainly due to a 33% growth in wholesale
banking.



Although BCP Bolivia
made a positive contribution to our results in 2011, the country of Bolivia continues to experience a volatile political environment
notwithstanding evidence of decreasing inflationary pressures through the last quarter of 2011.



Edyficar



Edyficar
focuses on SME lending and, together with BCP, it held a 21.4% market share in terms of loans at the end of 2011 (compared to
a market share of 15.0% held by its closest competitor). The consolidation of Edyficar’s results into BCP’s financial
statements resulted in a total contribution of US$26.2 million in 2011. As of December 31, 2011, Edyficar registered total assets
of US$591 million which consisted of US$479.1 million from the company’s net loan portfolio, its main asset. Total liabilities
increased to US$515.2 million, which included US$236 million from banking activities. Net shareholders’ equity reached US$75.8
million at the end of 2011.



As of December 31,
2011, Edyficar’s client base registered 356,000 clients, a base 24.5 % larger than in 2010. The average amount of an Edyficar
loan in 2011 was S/. 3,837 (approximately US$ 1,423). Edyficar registered a Past-due loans (PDL) ratio of 4.0% at the end of 2011,
a reflection if its portfolio quality. Edyficar reached a ROAE of 22.9% (including a goodwill of US$ 50.7 million and an efficiency
ratio of 55.3 %.



The acquisition of
Edyficar was part of BCP’s strategy to capture a significant portion of the growth of the Peruvian SME segment, which is
expected to expand significantly over the next several years. BCP intends to support Edyficar’s growth and development by
improving its funding cost and structure and providing necessary capital and technology.



ASB



2011 was characterized
by slowed growth in many developed economies. ASB’s net earnings for 2011 amounted to US$41.1 million, compared to US$48.9
million reported in 2010. Notwithstanding this 16% decrease, given the global economic situation we believe that these results
reflect a sustainable trend over the past two years, which reflects a high quality risk portfolio and diversified investment strategies.
Credicorp received a corresponding contribution of US$41.1 million from ASB.



Net income from interest
in 2011 totaled US$31.9 million, which represented a decrease of 15% from the previous year. This decrease was primarily due to
the company’s investment strategies, which were affected by the slowdown in economies from the European Union (EU) and the
United States. Despite the environment, ASB sustained a financial margin above US$31 million, which in turn was a result of the
company’s lower funding cost, considering the levels of LIBOR rates during the year, a favorable scenario for the bank given
the short-term structure of its customers’ deposits and their fast re-pricing, in contrast to assets engaged for middle and
longer terms and at higher interest rates. Non-financial income reached US$18.4 million and included income from fees, the sale
of securities and foreign exchange operations.



ASB’s total assets
were US$1,523.5 million as of December 31, 2011, an increase of 14% from 2010. This increase in total assets was mainly a result
of its strategy to obtain funds by taking advantage of the economic growth of the Peruvian market.



At the end of 2011,
ASB’s assets under management totaled US$3,194 million, compared to US$3,177 million in 2010. This growth was primarily a
result of increases in our customers’ global positions and the market value of their portfolio, despite of the turbulence
and heightened concerns about recovery in global financial markets.



21







Insurance segment



Grupo Pacífico



In 2011, Grupo Pacífico,
which encompasses Pacífico Seguros, Pacífico Vida and Pacíficosalud EPS, reported net income, after deducting
minority interests, of US$57.1 million (compared to US$55.4 million of net income in 2010). However, the contribution we received
from Grupo Pacífico increased, from a gain of US$48.2 million in 2010 to a gain of US$65.6 million in 2011. This increase
was primarily a result of Grupo Pacifico’s acquisition of a greater ownership interest in Pacifico Vida, which in turn resulted
the consolidation of 100% of Pacifico Vida’s net income after the acquisition of ALICO’s stake in October 2010.



Grupo Pacífico’s
underwriting result in 2011, which reflects the company’s core business performance for the year, was US$100.4 million, which
represented an increase of 9.1% compared to 2010’s figure. This improvement was mainly due to a 16% increase in premiums
from US$752 million in 2010 to US$872 million in 2011.



We believe that there
is substantial growth potential in Peru’s insurance market, given the industry’s weak market penetration. Efficiency
and risk management will continue to be key indicators in measuring Grupo Pacífico’s performance. Efficiently utilizing
the BCP network is an essential component of Grupo Pacífico’s growth strategy 2011, as we believe that capitalizing
on synergies between the insurance business and the distribution channels of the banking business will lead Grupo Pacífico
to greater penetration in the insurance market.



Pension fund segment



Prima AFP



During 2011, the growth
of the Peruvian economy resulted in positive results for the Private Pension System (SPP), achieving growth in new affiliates,
number of contributors and collections during the year. However, the international financial crisis present throughout the year
affected the value of assets under management. These economic conditions and the increased uncertainty in financial markets, led
to a decrease in the value of funds under management by the SPP as a whole, which reached US$30.4 billion as of December 31, 2011
and represented a 2.3% year-over-year decrease compared to December 31, 2010.



Prima AFP was able
to strengthen its position in the market by adjusting its processes and organization to provide high-quality services and timely
and transparent information to its clients. As a result, the contribution we received from Prima AFP in 2011 reached US$32.4 million,
as compared to US$25.5 million in 2010.



Funds under management
at Prima AFP decreased 2.9% from US$9.8 billion in 2010 to US$9.5 billion as of December 2011. By year-end 2011, Prima AFP’s
market share of total funds under management was 31.2%, representing a slight year-over-year decrease. Prima AFP is the largest
pension fund management company in Peru by funds under management.



Prima AFP’s revenues
from commissions in 2011 reached US$104.4 million, a 22.6% increase from 2010. This improvement was a result of a stable and superior
portfolio of contributing members. Revenues in 2011, as was the case in 2010, included 12 contribution periods, as a result of
the Peruvian government extending until 2014 the exemption from deductions on additional salaries paid in July and December under
Peruvian labor law.



To improve its operating
results, Prima AFP will continue to focus on increasing efficiency and reducing costs. Emphasis will also be placed on improving
Prima AFP’s long-term stability through improved risk management, which is one of the company’s highest priorities.



22







Brokerage and other



The majority of our
brokerage activities are conducted through BCP, ASB, Credicorp Securities Inc., which is a U.S. registered broker-dealer with its
offices in Miami, and Credicorp Ltd., which mainly includes expenses and the tax withheld in connection with the estimation of
the dividends to be distributed to us by our Peruvian subsidiaries (BCP and Grupo Pacifico). BCP offers clients a wide range of
brokerage products and services, including mutual funds and custody services through its branch network in Lima and, on a more
limited basis, throughout the rest of Peru. In addition, we also offer a wide range of brokerage products and services through
ASB.



In 2011, our brokerage
activities represented 2.2% of total consolidated income and 1.3% of total consolidated assets.



Consolidated Contributions



The following table
sets forth the contribution to the consolidated net income attributable to our equity holders by each of our principal subsidiaries:



|                         |  |                                                |       |  |      |  |       |      |  |  | Variation | 
|------------------------ |  | ---------------------------------------------- | ----- |  | ---- |  | ----- | ---- |  |  | --------- | 
|                         |  | 2009                                           |       |  | 2010 |  |       | 2011 |  |  | 2011/2010 | 
|                         |  | (U.S. Dollars in millions, except percentages) |      
|BCP (1)                  |  |                                                | 388.5 |  |      |  | 464.4 |      |  |  | 564.0     | 
|ASCH                     |  |                                                | 29.7  |  |      |  | 48.8  |      |  |  | 42.5      | 
|Grupo Pacífico           |  |                                                | 37.4  |  |      |  | 47.5  |      |  |  | 65.6      | 
|PRIMA AFP and others (2) |  |                                                | 14.2  |  |      |  | 10.6  |      |  |  | 37.2      | 
|Total                    |  |                                                | 469.8 |  |      |  | 571.3 |      |  |  | 709.3     | 



(1)         Includes Banco de Crédito
de Bolivia, which contributed US$22.3 million in 2011, US$15.8 million in 2010 and US$30.3 million in 2009; and Edyficar, which
contributed US$26.2 million in 2011, US$21.5 million in 2010 and US$1.1 million in 2009 (BCP acquired Edyficar in October 2009).



(2)         Includes Prima AFP (which recorded
a net income of US$32.4 million in 2011, US$25.5 million in 2010 and US$20.8 million in 2009), Credicorp Securities, Credicorp
Ltd. (which mainly includes expenses and the tax withheld in connection with the estimation of the dividends to be distributed
to us by our Peruvian subsidiaries (BCP and Grupo Pacífico)) and others.



| | (2) | Strategy
| | --- | --------



Credicorp was established
to create a financial group that would benefit from synergies among the group’s companies and would become a leader within
each business market in which the companies operate. In moving steadily toward achieving these strategic goals, we have become
a leading financial group. However, we do not operate in a static environment, and the last three years have demonstrated how quickly
and dramatically the world can change. Peru’s economic growth slowed significantly in 2009 as a result of the international
financial crisis. In response to this, we took steps toward improving our long-term sustainability and worked to position our companies
for growth as the Peruvian market continues to evolve. In 2010 Peru’s economy returned to the dynamism it showed in the pre-crisis
period, and we continued, and completed in many cases, the implementation of various initiatives that were designed to ensure the
sustainability of Credicorp’s business segments.



The Peruvian market
offers one of the strongest growth opportunities in South America. In the banking, insurance and pension fund industries, market
penetration by service providers remains low. Accordingly, our business plans incorporate strategies that will enable us to reach
underserved segments of the Peruvian population and achieve higher returns on our capital. As our businesses expand, it becomes
increasingly important for us to maximize efficiencies and control risk. Our strength in these areas is the cornerstone of our
strategy to achieve healthy, sustained and profitable growth.



23







The growth strategies
we have adopted for each of our companies include a focus on retail markets. Our strategy provides a launching pad for two points
of financial inclusion: our Agente BCP covers the liabilities’ side by promoting banking penetration and the subsequent point
for access to credit, which gives low income sectors the opportunity to improve standards of living and become part of the country’s
economic model for growth. Using our collective resources, we are developing information systems that can collect commercial sales
information and provide us with the data we need to process scoring models by segment. This will enhance our ability to assess
and control risk, as well as cross-selling our products between our business segments.



Another strategic focus
for Credicorp involves the regionalization of Latin American market, which has picked recently increased in relevance due to problem
in developed markets. This has been reflected in the creation of the MILA (Integrated Latin American Market), which we believe
provides strong possibilities for growth. The integration of equity trading in Chile, Colombia and Peru has created the largest
exchange in Latin America by number of issuers and the second-largest exchange in Latin America by market capitalization after
the Brazilian BM&F Bovespa. Credicorp has seized this opportunity by:



| | · | reaching an agreement with the shareholders of Correval S.A. Sociedad Comisionista de Bolsa, one
of Colombia’s most important brokerage firms (achieving nearly 12% of market share during the last four years for all of
its products), to acquire 51 percent stake, a transaction that to date was approved by the relevant regulatory authorities in Colombia
and Peru and the precedent conditions were fulfilled, hence the settlement of the transaction will take place in the upcoming days;
and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | reaching an agreement in principle with the shareholders of IMTrust S.A., a brokerage entity established
in Santiago, Chile, to acquire 60.6 percent stake in such entity, subject to the completion of a due diligence process, and approval
from the supervisors in Chile and Peru, among other precedent conditions.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



This acquisitions reflect
our commitment to concretize our regional presence in the investment banking and capital markets sectors.



We also continue to
make strides toward greater integration of our companies by more extensively sharing our talents and experience.



Outlook for 2012



We expect that the
favorable economic conditions in Peru that characterized 2011 will continue in 2012. Throughout the year, we will continue to take
a development-oriented approach, preparing for changes in the Peruvian market, which is expected to have high growth rates in the
upcoming years. Given the low levels of penetration in Peru’s banking and insurance markets, we believe that our subsidiaries
will be well positioned to expand. Our high equity levels, technical and professional expertise and strong relationships built
on the trust of our customers are all indicative of a positive outlook for the Company.



| | (3) | Credicorp Operating Segments
| | --- | ----------------------------



Banking



The majority of our
banking business is carried out through BCP, which is our largest subsidiary and the oldest bank in Peru. A portion of our banking
business is also carried out by ASB, which principally serves Peruvian private banking customers through offices in Panama. We
conduct banking activities in Bolivia through BCP Bolivia, a full service commercial bank which maintained an 11.3% market share
of current loans and 11.3% of total deposits, which situates it in third place in terms of loans and fifth with regard to deposits
in the banking system.



24







Our banking business
is organized into wholesale banking activities, which are carried out by BCP’s Wholesale Banking Group (which includes the
corporate banking operations of ASB), and retail banking activities, which are carried out by BCP’s retail banking group.
To increase our visibility and raise our market share in the retail banking industry, BCP bought Edyficar, which is a scaled, high-growth
and highly profitable microfinance business. Edyficar has a solid risk management strategy and a proven track record in both loan
portfolio growth and social impact. Edyficar provides financial services for low-income micro-entrepreneurs and unbanked communities.



We apply uniform credit
policies and approval and review procedures, which are based on conservative criteria adopted by BCP, to all of BCP’s subsidiaries.
Our general manager is in charge of setting the general credit policies for our different business areas. These policies are set
within the guidelines established by Peruvian financial sector laws and SBS regulations (See “(11) Supervision and Regulation—(ii)
BCP”) and the guidelines set forth by our Board of Directors.



Our deposit-taking
operations are principally managed by BCP’s retail banking group and ASB’s private banking group. See “(12) Selected
Statistical Information—(iv) Deposits.”



Insurance



We conduct our insurance
operations exclusively through Grupo Pacífico and its subsidiaries, which provide a broad range of insurance products. Grupo
Pacífico focuses on three business areas, property and casualty insurance through Pacífico Seguros, life and pension
insurance through Pacífico Vida, and health care insurance through Pacíficosalud EPS. Grupo Pacífico, like
other major Peruvian insurance companies, sells its products both directly and through independent brokers and agents. Directly
written policies tend to be for large commercial clients, as well as for life and health insurance lines.



Pension funds



Credicorp conducts
all of its pension fund activities through its private pension fund administrator Prima AFP. During 2011, Credicorp through its
subsidiary Prima AFP, focused mainly on obtaining new affiliates (approximately 86,000 new affiliates, topping previous year figure
by 55%) and building stronger relations with its client base, by providing permanent information and diverse channels of communication.



In terms of funds
under management, the year 2011 was marked by uncertainty in the financial markets due to global economic outlook and European
fiscal crisis, resulting in negative impact on our funds under management. Despite this scenario, the Peruvian economic indicators
have remained solid and outlook remains favorable. Funds under management by Prima AFP at the end of December 2011 reached US$
9,486 million, which falls below 2010’s value (US$9,765 million) due to impact of market yields. On the other hand, monthly
affiliate remuneration reached US$535 million in 2011 topping the figure in 2010 by 23.6% (US$ 433 million).



Brokerage and other



The majority of our
trading and brokerage activities are conducted through BCP, ASB and Credicorp Securities Inc. (also referred to as Credicorp Securities),
which is one of our wholly-owned subsidiaries. Credicorp Securities is a U.S. registered broker-dealer with its offices in Miami.
Our asset management business is carried out by BCP in Peru, through its subsidiary Credifondo, and by ASB.



25







We offer brokerage
and other services through BCP and ASB. BCP offers clients a wide range of such products and services, such as brokerage, mutual
funds and custody services through its branch network in Lima and, on a more limited basis, throughout the rest of Peru. In addition,
ASB also offers brokerage and other services.



In the last few years,
we have consolidated an important line of business, asset management, for our customers. As of December 31, 2011 our assets under
management totaled US$ 4.1 billion (without including private pension funds under management), a decrease of 31.1% from 2010, which
was mainly due to the transfer of an important portfolio of shares and mutual funds from Credicorp Securities to another broker-dealer
custodian.



Mutual funds represent
another important contributor to our asset management business, carried out through BCP’s mutual funds subsidiary, Credifondo
Sociedad Administradora de Fondos Mutuos (or Credifondo). Credifondo leads the Peruvian market with a share of 42% of the total
assets currently under management. Creditítulos is an asset securitization entity 100% owned by BCP. Finally, Atlantic Security
Bank offers the international mutual funds and financial advisory services to private banking customers.



We established a corporate
supervision project entitled “Asset Management” due to the size of these businesses, the importance of the commissions
they generate and, above all, the fiduciary responsibility they entail. The main objective is to establish homogeneous risk control
and investment policies based on best international practices. The Asset Management business has four main components:



| | • | Portfolio Management: We seek to consolidate the good performance of our portfolios and funds through
strict risk control and an appropriate level of diversification. To achieve this, we focus on improving three key aspects: investment
policies, investment processes and management metrics.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Financial Management: We focus on providing quality financial advisory services, building customer
loyalty, and encouraging customers to invest in a diverse combination of securities according to their risk profile. Our objective
is to improve the standards of the advisory services that our commercial bank offers and to distinguish between the levels of advisory
services provided to different sectors.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Brokerage: We attempt to provide a timely and high quality service, offering competitive execution
costs, channeling a greater proportion of the assets traded by our companies to profitable investments and identifying opportunities
for joint action (resulting in better prices), in addition to improving controls aimed at avoiding possible conflicts of interest.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Risk Analysis: We seek to identify, quantify, regulate and, ultimately, minimize the risks associated
with operations, credit, market, liquidity, legal contingencies, conflict of interests and other risks. Another objective of our
risk analysis is setting corporate investment limits, creating a portfolio investments risk manual, and ensuring strict compliance
with risk control rules.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (4) | BCP and Subsidiaries
| | --- | --------------------



General



BCP’s activities
include wholesale banking, asset management, treasury and retail banking. As of December 31, 2011, the consolidated operations
of BCP ranked first among Peruvian banks in terms of total assets (US$26.8 billion), total loans (US$16.4 billion), deposits (US$17.5
billion) and net equity (US$2.4 billion). At the end of 2011, BCP’s loans, on an unconsolidated basis, represented approximately
33% of the total Peruvian banking system (lower than the 33.6% registered at the end of 2010) and BCP’s deposits represented
approximately 34% of the total Peruvian banking system (below the 36.3% reported at the end of 2010).



26







As of December 31,
2011, BCP had the largest branch network of any commercial bank in Peru with 342 branches. BCP also operates an agency in Miami
and a branch in Panama. In addition, as of December 31, 2011, BCP Bolivia and Edyficar had 42 and 123 offices, respectively, through
which they serve their clients.



As of and for the year
ended December 31, 2011, BCP accounted for 87.4% of our total assets, 75.2% of our net income and 69.3% of our net equity. BCP’s
operations are supervised and regulated by the SBS and the Central Bank.



BCP groups its client
base according to the following criteria:



|                  |  | Client Segmentation
|----------------- |  | -------------------
|Business          |  | Group              
|Wholesale Banking |  | Corporate          
|                  |  |                    
|                  |  | Middle-Market      
|                  |  | Affluent           
|                  |  |                    
|                  |  |                    
|                  |  | Consumer           
|Retail Banking    |  |                    
|                  |  |                    
|                  |  | Small Business     
|                  |  |                    
|                  |  | Micro-Business     



The grouping was a
result of an analysis which addressed factors beyond the simple size and volume of activity for each client, such as clients’
affiliation with other companies or groups, the degree of follow-up required, and their credit ratings.



Subsidiaries



BCP’s corporate
structure consists of a group of local subsidiaries offering specialized financial services, which complement BCP’s commercial
banking activities. In addition to its local subsidiaries, BCP has an agency in Miami, a branch in Panama and a subsidiary in Bolivia.



BCP and its principal
subsidiaries as of December 31, 2011 are as follows:



| | • | Banco de Crédito de Bolivia, or BCP Bolivia, is BCP’s commercial bank in Bolivia.
BCP owns 95.92% of BCP Bolivia and we hold the remaining interest. BCP Bolivia maintained an 11.3% market share of current loans
and 11.3% of total deposits, and has a network of 42 offices located throughout Bolivia. BCP Bolivia owns one of Bolivia’s
largest brokerage houses, Credibolsa S.A. Agente de Bolsa, and this subsidiary owns Credifondo SAFI Bolivia, a mutual fund administrator
company. BCP targets middle- and small-sized clients and offers a broad range of corporate, personal banking and leasing products.
BCP Bolivia’s results are consolidated in BCP’s financial statements.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Empresa Financiera Edyficar S.A. was acquired in October 2009 and is 99.79 % owned by BCP. It is
engaged in micro finance in Peru.
| | - | ----------------------------------------------------------------------------------------------------------------------------------



| | • | Credibolsa Sociedad Agente de Bolsa, or Credibolsa, was established in June 1991 and is 100% owned
by BCP. It is engaged in portfolio advisory and brokerage activities in the Lima Stock Exchange.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



27







| | • | Credifondo Sociedad Administradora de Fondos Mutuos, or Credifondo, is a mutual fund management
company that was established in 1994. Credifondo is 100% owned by BCP.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Creditítulos S.A., or Creditítulos was established in 1997 and is 100% owned by BCP.
Creditítulos serves as an asset securitization entity.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------



| | • | Inmobiliaria BCP is the real estate subsidiary of BCP. It manages the sale of real estate that
has been foreclosed or received in payment by BCP. Inmobiliaria BCP is 100% owned by BCP.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Solución Empresa Administradora Hipotecaria S.A. was established in 1979 under the name
Solución Financiera de Crédito del Perú S.A. and is 100% owned by BCP. Its business included mortgage lending,
consumer lending and SME financing. In the company’s shareholders meeting on November 19, 2009, Solución Financiera
de Crédito del Perú S.A.’s shareholders decided to change the company from a finance company to a mortgage
administrator company and to change the company’s name to Solución Empresa Administradora Hipotecaria S.A. These changes
were necessary because, according to Peruvian Law, no person is allowed to be the owner of two financial institutions of the same
type. As a result, the company will primarily engage in the administration of mortgage portfolios. These changes were approved
by the SBS through resolution SBS 47-2010 on May 21, 2010.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Business Lines



| | (i) | Wholesale Banking Group
| | --- | -----------------------



BCP’s wholesale
banking group (Wholesale Banking Group), which competes with local and foreign banks, has traditionally represented the majority
of BCP’s loans. BCP’s traditional long term relationships with medium and corporate companies provide its Wholesale
Banking Group with a competitive advantage.



BCP’s Wholesale
Banking Group maintained its positive trend in loan placements, posting average portfolio levels of US$8,391 million in 2011 (20%
higher than in 2010). It also maintained its leadership in the wholesale banking market with a 40.1% market share in direct loans
and a 55.0% stake in debt placements in the Peruvian capital markets, BCP has the largest capital base among Peruvian banks, which
provides it with more resources to meet the financing needs of its corporate clients. BCP has established longstanding client relationships
with virtually all of the major industrial and commercial groups in Peru. The Wholesale Banking Group provides its customers with
cash management solutions, short- and medium-term loans in local and foreign currencies, foreign trade-related financing and lease
and project financing.



The Wholesale Banking Group is divided into the following
areas:



| | • | Corporate Banking, which provides loans and other credit and financial services to companies with
annual revenues in excess of US$50 million;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------



| | • | Middle-Market Banking, which serves mid-sized companies;
| | - | --------------------------------------------------------



| | • | Institutional Banking, which focuses principally on serving profit and non-profit organizations,
state-owned companies and other major institutions;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------



| | • | International Banking and leasing, which manages BCP’s relationship with financial institutions
locally and abroad, trade products, international operations services and financial leasing products;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



28







| | • | Corporate Finance, which provides underwriting and financial advisory services to corporate and
middle-market clients; and
| | - | --------------------------------------------------------------------------------------------------------------------------



| | • | Cash management and transactional services, which develop products and services to support clients’
daily activities of cash management, collections, payments, and investments, among others.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Net income from the
wholesale banking sector reached US$210 million in 2011 (compared to US$138 million in 2010). The 2011 result reflected increases
in net interest income (loans and deposits) of 29% and in fee income of 17%.



Corporate Banking



BCP continues to meet
the needs of its corporate clients, assisting them with financial services, cash management solutions and short and medium-term
financing. As a result, BCP’s corporate banking direct credits grew from US$5,155 million to US$5,477 million from 2010 to
2011, and income from financial services increased by 21%, from US$68 million to US$83 million. These increases, coupled with a
very low default ratio (less than 0.1%), enabled the Corporate Banking Area to meet its financial targets with a net income of
US$110 million, an increase of 57% over the US$70 million of net income achieved in 2010.



Client Profile: The
Corporate Banking Area is focused on serving large-sized companies that have an annual turnover of over US$50 million, audited
financial statements and dominant market positions in their particular brands or product areas. Even if they do not meet the above
criteria, BCP may classify other firms in this category if they belong to very large economic groups from industries that are important
to Peruvian economy.



The Corporate Banking
Area offers a broad range of products and tailors its product offerings to meet each client’s unique requirements. In general,
this area is expected to offer high-value-added products and services, particularly cash management services, at competitive prices.



The majority of the
Corporate Banking Area’s financing is provided to fund capital expenditures and investments, sales, international trade and
inventories. The Area also offers term financing (in almost all cases backed by real guarantees), financial leasing, factoring,
and domestic collections and nationwide fund transfers.



Additionally, Corporate
Banking clients can obtain investment banking, advisory and financing services through the Corporate Finance Area, which operates
as part of the Wholesale Banking Group and also serves significant middle-market banking clients.



Guarantees received
by this area consist of (i) receivables in the case of sales financing, (ii) warrants or pledges over inventory, in the case of
inventory financing and (iii) real guarantees, in the case of financing for fixed asset acquisitions and improvements to their
infrastructure.



We believe that prospects
for growth in this business are limited, due to high market penetration (45.9%) and increasing competition against direct loans
resulting from increased capital markets activity.



Middle-Market Banking



BCP’s Middle
Market Banking Area provides banking services targeted to medium-sized companies from various economic sectors. The products offered
to middle-market clients are similar to those offered to corporate banking clients. The three major types of products are:



| | • | Revolving credit lines to finance working capital needs, international trade financing;
| | - | ---------------------------------------------------------------------------------------



29







| | • | Stand-by letters of credit and bond guarantees; and
| | - | ---------------------------------------------------



| | • | Structured financing for long-term and medium term requirements, through direct loans or financial
leasing.
| | - | -----------------------------------------------------------------------------------------------------------



BCP has identified
several opportunities to engage middle market companies, particularly in Peru’s manufacturing, wholesale, retail, fishing
and construction industries. BCP has created dedicated areas which focus on attending to the needs of these specific economic groups.
BCP has a middle market client portfolio of approximately 7,000 companies, including 1,173 economic groups. Generally, these clients
are not listed on any stock exchange; however in certain cases they have accessed the capital market either for bonds or commercial
paper. These companies are typically family-controlled but professionally managed; their financial information is audited.



Since 2009, the Middle-Market
Banking Area has revised its customer segmentation policies. The Area includes mature companies that will eventually become part
of our corporate segment, traditional mid-size companies and a group of growing small cap companies. In selecting which small companies
are best suited for service by our Middle-Market Banking Area, we consider a mix of different characteristics, such as annual revenues,
financial leverage, overall debt and product penetration and complexity. BCP’s middle-market clients’ annual revenues
generally vary from US$6.7 million to US$50 million, and are serviced nationwide by 13 BCP regional managers.



The Middle-Market Banking
Area made has continued to make significant progress toward implementing its strategic goals by:



| | • | Creating dedicated points of contact to meet the needs of its customers more efficiently;
| | - | -----------------------------------------------------------------------------------------



| | • | Streamlining its lending processes to provide middle market customers with prompt service;
| | - | ------------------------------------------------------------------------------------------



| | • | Introducing new electronic financial products to make its services more accessible to customers;
| | - | ------------------------------------------------------------------------------------------------



| | • | Incorporating sophisticated technical tools in order to implement a risk-based pricing model;
| | - | ---------------------------------------------------------------------------------------------



| | • | Focusing on fee income, and loan portfolio growth; and
| | - | ------------------------------------------------------



| | • | Introducing a new commercial planning model that employs an efficient and standardized methodology.
| | - | ---------------------------------------------------------------------------------------------------



According to internal
reports, in 2011 net income from the Middle-Market Banking Area increased to US$87 million. This was the result of an increase
in net interest income (loans and deposits) of 33% and in fee income of 13%. The Middle-Market Banking Area’s annual average
loan portfolio had a market share of 34.5%, (US$2,930 million), making BCP the leading bank in its segment.



We believe that middle
market companies have benefited significantly from the overall economic improvements in Peru over the past few years. Loan quality
problems have been addressed through procedures and organizational changes that have focused on improving the loan approval and
credit-risk assessment processes.



Institutional Banking



BCP’s Institutional
Banking Area serves 900 clients in Lima and 300 clients throughout the rest of the country. In Lima, a specialized team in wholesale
banking serves governmental entities, educational institutions, religious organizations, international bodies, non-governmental
organizations, and microfinance institutions. In other provinces, a specialized remote wholesale banking team partners with BCP’s
retail banking area to serve clients.



The annual average
deposit amount in BCP’s Institutional Banking Area (Lima and provinces) reached US$2.6 billion in 2011. The Institutional
Banking Area is strategically important because of the potential its clients present for generating income from fees and cross-selling
opportunities. BCP’s strategy in this Area is focused on building customer loyalty by offering customized services at competitive
rates and providing outstanding service quality. Our institutional banking typically requires remote office banking, collections
and automated payroll payment services.



30







International Banking



The International Banking
Area focuses on providing short-term credit for international trade, which is usually funded with customer deposits or with credit
lines from foreign banks and institutions. Medium-term lines of credit funded by international commercial banks and other countries’
governmental institutions are also provided to clients. In addition, this unit earns fees by confirming guarantees issued by international
banks and other fees as a result of the international payment business. The International Banking Unit also promotes international
trade activities with its local clients by structuring trade products and services, organizing and sponsoring conferences and advising
customers through a wide range of trade products.



Since September 2008
the International Banking Unit has also been supervising our trade back-office unit (International Operations). BCP maintains business
relationship with correspondent banks, development banks, multilateral and export credit agencies in countries around the world.
At present, BCP manages credit lines for foreign trade transactions, working capital and medium- and long-term investment projects.



In 2011 (based on BCP’s
internal report), BCP’s export volumes increased by 19.3% reaching US$19.8 billion (compared to US$16.6 billion in 2010),
which represented 43.3% of total Peruvian exports.



Total Peruvian imports
were US$ 37.9 billion in 2011, increasing by 26.8% from US$ 29.9 billion in 2010, which was primarily due to higher demand for
raw materials and capital goods. BCP’s import letters of credit, collections and transfers amounted to US$12.4 billion in
2011, increasing by 31.9% from US$9.4 billion in 2010, which represented 32.7% of total Peruvian imports.



BCP has a direct presence
abroad through its agency in Miami and its branch in Panama. It has access to a wide network of foreign correspondent banks and
can offer several internationally competitive products to its customers.



BCP has correspondent
banking relationships and uncommitted credit lines with more than 80 banks for foreign trade operations, financing of working capital
and medium- and long-term investment projects. At the same time, BCP has been approaching the banking market to fund medium-term
needs through the usage of syndicate loans structured by different international banks.



During 2011, Peru had
a very active leasing market. Leasing as a way of financing became a more important tool for Peruvian companies over the course
of the last year, growing from US$6.4 billion as of December 31, 2010 to US$7.7 billion as of December 31, 2011. BCP has consolidated
the leasing activities developed by the bank over several years. BCP ended 2010 with US$2.4 billion outstanding in this product,
which represented a 38.8% of the market share in Peru. By the end of 2011, BCP registered a slightly smaller market share, 37.5%,
reaching US$2.9 billion in outstanding balances.



Corporate Finance



BCP ́s Corporate
Finance Area is a leading advisor to corporate, middle market and institutional clients in Peru. Our Corporate Finance team is
composed of over 25 executives based in Peru and is the largest team of its kind in the Peruvian marketplace. BCP ́s Corporate
Finance Area provides a wide range of investment banking and corporate finance advisory services, including structured financings,
capital raisings, initial public offerings, mergers and acquisitions and corporate restructurings. In 2011, the Corporate Finance
Area participated in over US$2,400 million in principal amount of structured transactions, which involved financing through both
the local capital market and the banking system. BCP’s Corporate Finance team is ranked first in the 2011 local debt capital
market league tables having placed over US$780 million in principal amount of debt instruments, which accounts for 55% of the local
debt capital markets primary offers. The main projects in 2011 included:



31







| | · | Syndicated term loan of US$160 million
(BCP participated with US$100 million) for Consorcio Transmantaro to finance the construction of Zapallal-Trujillo transmission
line.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                             

| | · | Reserva Fría leasings: (i) a leasing
arrangement of US$110 million for Empresa Eléctrica de Piura - EEPSA to finance the construction of the Reserva Fría
project located in Talara, Piura; and (ii) a subordinated leasing of US$100 million for EnerSur to finance machinery and equipment
of the Reserva Fría project located in Ilo, Moquegua.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                   

| | · | Leasing arrangement of US$100 million
for Corporación Aceros Arequipa to finance the expansion of its plant in Pisco.
| | - | ---------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                      

| | · | Medium Term loan of US$150 million for
Dia Bras Perú to finance the acquisition of 92.12% of the shares of Sociedad Minera Corona S.A.
| | - | --------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                       

| | · | Arrangement and placement of Edyficar
and Pacífico subordinated bonds for S/.70 million and US$60 million respectively to strengthen both companies’capital
position.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                      

| | · | Medium Term loan arrangements of US$50
million for Abengoa to finance the construction of a private transmission line for the Xstrata Tintaya mining project of Las Bambas.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



During 2011, the Corporate
Finance Area generated income in excess of US$21.5 million from structuring, advisory and issuance fees.



Cash management
and transactional services



Our Cash management
and transactional services unit is in charge of developing transactional services that handle the exchange of information among
and money transfers to corporations, midsize companies, institutions and micro-business companies. This unit is responsible
for both the development and marketing of transactional (or “cash management”) services for our corporate and institutional
clients. We offer more than 30 products aimed at strengthening ties with clients and assuring their loyalty, as well as reducing
costs using electronic channels and increasing fee income.  Services managed by this unit include collections (automated trade
bill collection), automated payments (direct credits to personnel and suppliers’ accounts, reverse factoring and money
transfers), electronic office banking, electronic lending solutions and cash management through checking accounts with special
features.



During 2011, transactional
services continued to be an important contributor to our earnings. The monthly average of the number of current accounts increased
4% and fee revenue increased 7% compared to 2010 which not includes the small business as a segment. Fee income from collection
services also increased with letters and companies’ collections commissions increasing by 8% and 27%, respectively, with
regard to 2010 due to our strong performance in the corporate and midsize market. Our strategic decision to offer value to
our clients through the implementation of a more efficient service mechanism explained part of this improvement.  In addition,
the higher demand by clients for the remote banking service “Telecredito” generated, in terms of number of transactions,
a growth of 20% compared to 2010. Tax collections also grew 12%. Likewise, the transaction volume generated by reverse factoring
increased 16% in 2011.



| | (ii) | Retail Banking Group
| | ---- | --------------------



According to BCP’s
internal reports, by the end of 2011, retail banking-related loans represented 42% of BCP’s total loans, while retail banking-related
deposits accounted for 50% of BCP’s total deposits. Net income from retail lending constituted 37.3% of BCP’s net income,
while income from retail related fees constituted 62.6% of BCP’s total fee income.



In 2010, the Retail
Banking Group’s loan volumes grew by 22.3% as compared to volumes in 2009, reaching US$5,322 million. In 2011, loan balances
reached US$7,108 million, which represented a 33.6% increase over 2010’s figure. This growth was a result of strong consumer
lending, which includes installment loans and credit cards, home mortgages and small and micro business loans. With respect to
deposits, BCP’s retail banking-related deposits have also shown consistent growth. Deposits grew by 15.9% in 2010 reaching
US$ 9,062 million (US$ 7,820 million at the end of 2009), and by 15.2% in 2011, reaching a total of US$10,443 million by the end
of the year.



32







With the segmentation
of its retail client base, BCP is able to focus on cross-selling its products and improving per-client profitability. The Retail
Banking Group has undertaken several projects to improve one-on-one marketing techniques and tools for the sale of its products
to all market segments. BCP’s management expects the retail banking business to continue being one of the principal growth
areas for BCP’s lending activities.



BCP’s retail
banking serves individuals and small-sized companies with annual sales levels of up to US$6.7 million. BCP’s objective is
to establish profitable long-term relationships with its broad client base, using segmentation strategies that satisfy the specific
needs of each type of client. BCP’s retail distribution strategy changed at the beginning of 2007, when BCP started using
the branch network as the center for all transactional and commercial activities. BCP now has a commercial division, in charge
of most direct sales forces and branches, which in turn are organized on a geographic level. Each branch is responsible for servicing
and selling products to three customers groups: affluent, small business and consumer. In addition, each branch manager is responsible
for overseeing the different channels offered within the branch, such as account managers, customer service representatives and
tellers. Telemarketing, mid size business banking and real estate developer financing are not managed directly by local branches
because of the specialty level and high growth potential associated with these products.



During 2008, BCP saw
an unprecedented investment in infrastructure and human resources to support its “banking the unbanked” market penetration
strategy in Peru. As a result, between 2008 and 2011, BCP experienced substantial growth in its various channels, including 3,433
new customer contact locations (12 branches, 598 ATMs and 2,823 Agentes BCP). Demonstrating its leadership in attracting new customers,
BCP now services over four million customers with its network of 342 branch offices, 1,485 ATMs and 4,674 Agentes BCP (these figures
do not include the customer contact locations under Edyficar’s management, which we account for separately).



Affluent Banking



Affluent customers
are crucial to BCP because of their high loan and deposit volume and their attractive profitability. They receive a differentiated
value plan which includes: (i) access to innovative products, (ii) dedicated customer services channels such as specialized account
managers and/or expert phone banking, (iii) preferential service by tellers at the branches and (iv) special interest rates on
loans. BCP’s affluent customers, who total approximately 181,000, must have a positive credit record and at least US$20,000
in outstanding loans with BCP or a minimum US$40,000 balance in deposits with BCP. Approximately 120,000 of the most profitable
affluent clients are serviced through specialized account managers responsible for improving per-client profitability and achieving
long-term relationships through personalized service, cross-selling and share of wallet strategies. Account managers are also responsible
for new customer acquisition, particularly through mortgage loans. The affluent banking segment is very profitable, generating
33% of the retail banking group’s revenue while managing 4% of the total customer base, 40% of the retail group’s loan
volume and 33% of its deposit volume.



Small Business Banking



BCP’s Small Business
Banking Area accounts for 460,000 clients. Customers are divided into two groups with different business models, services levels,
and product access. The first group is top-end small business banking, which serves approximately 12,000 clients with debts between
US$0.2 million and US$1.2 million and/or annual sales between US$0.5 and US$6.7 million. The next group of 448,000 small business
clients has debts up to $0.2 million and/or annual sales up to US$0.5 million.



33







According to BCP’s
internal reports, the Small Business Banking loan portfolio grew from US$1,546 million to US$1,984 million in 2010, and by the
end of 2011 the loan portfolio was US$2,744 million. In terms of deposits, this group increased deposits from US$1,637 million
in 2009 to US$1,860 million in 2010 and then to US$1,885 million by the end of 2011.



Edyficar also serves
the microfinance segment, and as of December 31, 2011, it registered 356,099 clients with a total loan portfolio equivalent to
US$507 million, which represented an increase of 42% compared to the level registered at the end of 2010. As of December 31, 2011,
Edyficar had a client market share of 11.2%, making it second in terms of market share within the microfinance segment. The aggregate
market share of Edyficar and BCP in the microfinance segment totaled 21.4% at the end of 2011, and combined, they have the highest
market share in the microfinance segment (Micro-Finance is part of Small Business Segment).



Consumer Banking



Our Consumer Banking
Area is in charge of developing strategies for the retail customers who are not included in affluent banking or small business
banking. Its customer base consists of approximately 3.9 million medium to low income individuals. Consumer Banking focuses on
customers who receive their payroll through BCP (which represent slightly more than 1 million clients). Its strategies vary from
basic acquisition of new accounts for wage-earners with special terms regarding fees and interest rates, to more sophisticated,
aggressive cross-sell and retention programs that expand benefits to non-banking products (i.e., access to discounted products)
and access to payroll advances. BCP has continued to excel in expanding its debit card as a form of payment, maintaining more than
half of the Peruvian market share in withdrawals and payments with debit cards, which is a year-to-year increase of more than 674,000
cards. BCP concluded 2011 with more than 3.9 million cards.



Mortgage Lending



As of December 31,
2011, BCP was the largest mortgage lender in Peru with a market share of 34.01% of total mortgage loans in the Peruvian banking
system. This was largely the result of BCP’s extensive marketing campaigns and its improvements in the quality of procedures
for extending credit and establishing guarantees.



BCP expects the mortgage lending business
to continue to grow because of:



| | • | low levels of penetration in the financial market,
| | - | --------------------------------------------------

| | • | increasing demand for housing,
| | - | ------------------------------

| | • | availability of funds for the Peruvian government’s MiVivienda low-income housing program
and
| | - | ---------------------------------------------------------------------------------------------

| | • | the current economic outlook for controlled inflation and economic growth in Peru.
| | - | ----------------------------------------------------------------------------------



BCP had US$2,452 million
in outstanding mortgage loans as of December 31, 2011 (as compared to US$1,905 million at year-end 2010 and US$1,571 million at
year-end 2009).



All of our mortgage-financing
programs are available to customers with minimum monthly income of US$400. The MiVivienda program, a program supported by government
resources, placed a limit of US$60,000 on the value of the house to be purchased. BCP will finance up to 90% of the appraised value
of a property where monthly mortgage payments do not exceed 30% of the client’s stable net income. The maximum maturity of
the mortgage loans BCP offers is 25 years, in either U.S. Dollars or in local currency. Within the mortgage lending business, in
2011 BCP stopped offering variable and LIBOR-based interest rates and offered fixed interest rates on home mortgage loans denominated
in both U.S. Dollars and Nuevos Soles. BCP’s mortgage portfolio is predominantly fixed rate and U.S. Dollar-denominated.



34







In May 2006, the original
MiVivienda program was terminated. However, local banks (with governmental approval) launched a similar project, known as MiVivienda2,
to which proprietary funds contribute. In addition, in March 2007, BCP created a new program financed by the government called
Mi Hogar, which targeted people with a lower income profile. The conditions of the new program are almost identical to those of
the first MiVivienda program, except that financing is in local currency. In June 2009, the MiVivienda administration decided to
re-launch its new MiVivienda program with the objective of financing mortgages between US$17,000 and US$60,000 using government
funds (the government offers guarantees to the lending bank or financial institution through Corporación Financiera de Desarrollo
S.A. COFIDE). Simultaneously, they re-launched their product, Techo Propio, to finance mortgages between US$7,000 and US$17,000.
In both cases, the programs are intended to develop social housing in the country. In 2011, nearly 8,876 MiVivienda loans were
sold, 31% of which were sold through BCP. BCP’s main objective is to establish long-term profitable relationships with its
clients, by tailoring its products and services to satisfy the specific needs of each segment.



As of December 31,
2011, mortgages loans in the Peruvian banking systems totaled approximately US$ 7,140 million, which represented 14.9% of total
loans of the banking system and only 4.04% as a percentage of Peruvian GDP. In the case of Credicorp, mortgages loans accounted
for 14.06% of its total loan portfolio, and an average LTV (loan to value) of 61% and past-due-loan ratio of 1.3%.The Company,
through its subsidiary BCP, has increased lending to lower socio-economic segments in Peru through programs sponsored by the government
(Mi Vivienda and Mi Hogar). Mortgage loans to this sector represent approximately 11.6% of Credicorp’s total mortgage loans
and 1.82% of total loans. The Company’s total portfolio also includes mortgage loans granted in Bolivia, which represent
1% of its total loans with LTV of 57.9%.



The real estate markets
in Peru and Bolivia have grown in recent years as a result of the shortage of housing in both countries and, as a result, mortgage
loans have had a positive impact on Credicorp’s results of operations because of the increase in volume of loans granted
per year, the cross-selling that the product allows, and the low expected losses considering the high LTV of the products.



Consumer Lending
(Credit Cards and Installment Loans)



Consumer lending, credit
cards and installment loans have grown significantly as improving economic conditions have led to increased consumer spending.
BCP expects the strong demand for these products to continue. In addition to interest income, BCP derives fee income from customer
application and maintenance, retailer transactions, and merchant processing, finance and penalty charges on credit cards.



Peru’s economic
growth has had a major impact on the consumer credit market, which grew by a total of 30% during 2008, 7% during 2009, 15% in 2010
and 36% in 2011. The Peruvian national outstanding consumer credit monthly average balance is US$2,073 million, consisting of US$748
million in credit card loans and US$1,269 million in installment loans. BCP’s market share in consumer lending has consistently
increased since 2007 growing from 17.9% to 18.7%. This growth in consumer lending was achieved while maintaining a ratio of accounts
delinquent (for over 30 days) of below 4%.



Between 2007 and 2008,
installment loans experienced an unprecedented growth of US$211 million in outstanding balances, a 43% increase. During 2009 and
2010 installment loans grew another 16% and 17%, respectively. In 2011, these loans grew by another 35%. This result was due, in
part, to a strategic change by BCP, which was designed to broaden its customer base. In 2007, customers with a monthly gross income
of less than US$600 represented less than 5% of installment loan sales (by number of credits), while in 2011 they represented 50%
of all new installment loans sales (by number of credits), which represented 20% of the volume sold.



In the credit card
business, BCP continued to apply segmented strategies. BCP continues to offer value to its high-end customers through partnerships
with the airline LAN and with Primax, a chain of gas stations. These programs, coupled with BCP’s own travel program, enabled
it to reach record levels, both in point generation and point usage (exchanges). To attract customers in the lower income segment,
BCP worked on streamlining its risk assessment, card delivery process and generating partnerships with other retailers.



35







In 2011 Retail Banking launched a new product
called Movistar BCP MasterCard Credit Card, in partnership with Movistar, a global leader in the telecom business, with the intention
of strengthening BCP’s position in the lower income segment and issuing for the first time MasterCard credit cards. This
complements our AMEX and VISA offer.



BCP has been continuously
improving its credit monitoring systems and optimizing its scoring models, which include, among others, behavior, payments and
income forecasting. As a result, BCP has achieved a US$58 million increase in outstanding balances in 2008 and US$97 million in
2009. According to BCP’s internal records, the number of active credit cards has constantly increased from 325,000 in 2006
to 387,000 in 2007 to 430,000 in 2008, to 446,000 in 2009, to 580,000 in 2010 and to 750,000 in 2011. In addition, annual purchases
have increased from US$592 million in 2006 to US$868 million in 2007, to US$1,131 million in 2008, US$1,203 million in 2009, US$1,525
million in 2010 and US$2,100 million in 2011.



BCP is also the largest
shareholder of VISANET in Peru, holding approximately 35.22% of its total shares. The number of VISANET electronic payment terminals
grew to approximately 70,000 in 2011, as compared to 2,816 in 2006.



| | (iii) | Asset Management Group
| | ----- | ----------------------



In addition to BCP’s
Wholesale and Retail Banking operations, BCP operates an Asset Management Group, which currently is the largest capital markets
and brokerage distribution system in Peru. The principal activities of the Asset Management Group include, investment advisory,
brokerage, mutual funds, custody, trust and research.



BCP’s products
are distributed through its subsidiaries and branches. BCP’s close relationship and coordination with its subsidiaries has
established BCP as the market leader in the capital markets business in Peru.



Credibolsa is BCP’s
brokerage subsidiary through which BCP offers a wide variety of equity and fixed-income products and services as well as research.
Credibolsa’s activities include the structuring and placement of primary market issues and the execution and trading of secondary
market transactions.



Credifondo S.A, Sociedad
Administradora de Fondos, or Credifondo is BCP’s mutual fund subsidiary, which offers a variety of investment products and
services. Mutual funds offered by Credifondo include short/long term, U.S. Dollar and local currency fixed income funds, equity
funds and mixed funds (fixed income plus equity according to different risk profiles). It is the largest mutual fund manager in
Peru, according to data published by the Superintendencia de Mercado de Valores (SMVformerly CONASEV). As of December 31,
2011, Credifondo’s assets under management (AuMs) totaled US$2,131 million and represented 42.11% Peruvian market share.
Credifondo manages ten separate funds, with a total of 81,694 participants, compared to 92,626 in 2010. Funds are segmented according
to risk profile and invest primarily in Peruvian equities, U.S. Dollar-denominated bonds, Nuevo Sol-denominated bonds and U.S.
Dollar-denominated short-term securities. The decrease in the number of participants was due to the political uncertainty that
Peru experienced as a result of the 2011 presidential election. Credifondo’s management expects to increase its product offering
during 2012 by launching new funds that will invest in securities considered under the MILA Agreement (Mercado Integrado Latinoamericano)
in order to deliver a more competitive value proposition to its clients.



Creditítulos
is BCP’s asset securitization subsidiary, through which BCP offers local securitization structuring to corporate entities.



36







BCP held US$31.8 billion
in securities, as of December 31, 2011. BCP provides custody services that include physical and electronic custody of securities
and the payment of dividends and interest. Our most important clients are Peruvian institutions that invest in domestic and foreign
markets, as well as international investors that have chosen our custody services for their domestic investments.



Trading and Brokerage
Services



In 2011, the Peruvian
capital markets recovered strongly after the international financial crisis. The Lima Stock Exchange General Index (IGBVL) experienced
a decrease of 16.69% in 2011.



Credibolsa maintained
its leadership position in the Lima Stock Exchange with a 28.2% market share as a result of a trading volume that reached US$4,392
million in 2011. Credibolsa was also the number one stock broker for initial offerings (in terms of transaction principal volume)
issuing a total of S/. 789 million and US$494 million in fixed income securities and attaining a market share of 54.9%.



BCP’s management
believes that Credibolsa will continue expanding its business based on its ability to provide strategic advice to clients while
offering various products that meet their needs. Furthermore, BCP’s wholesale banking marketing represents an important strength
that allows Credibolsa reach leading companies in the local market, while BCP’s branch network helps to expand Credibolsa’s
business in the retail segment.



| | (iv) | Treasury
| | ---- | --------



Treasury, Foreign
Exchange, Derivatives and Proprietary Trading



BCP’s Treasury
and Foreign Exchange Groups are active participants in money market and foreign exchange trading. These groups manage BCP’s
foreign exchange positions and reserves and are also involved in analyzing liquidity and other asset/liability matters. The trading
desk plays an important role in short-term money markets in Nuevos Soles and in foreign currencies. It has also been active in
the auctions of certificates of deposit by Peru’s central bank as well as in financings through certificates of deposit,
interbank transactions and guaranteed negotiable notes, among other instruments.



BCP’s derivative
group serves companies ranging from SME to large corporations in their needs to hedge market risks. This group offers forwards,
FX options, interest rate swaps, cross currency swaps as well as tailor-made derivatives for its clients. BCP’s strong balance
sheet and experienced professionals allow the derivative group to provide not only innovative hedging solutions but also competitive
pricing to its clients. BCP’s derivative business is closely supervised by the treasury risk unit which includes professionals
trained in best risk practices in the international markets.



Since 2007, BCP has
adhered to international best practices in terms of cash management. BCP created the Assets and Liabilities Management Service
(or ALM) which is responsible for managing its balance sheet under the Asset and Liabilities Committee (or ALCO) oversight. ALM
is responsible for managing BCP’s balance sheet and for accepting reasonable interest rate and liquidity risks through management
of the short- and long-term transfer rates.



BCP’s proprietary
trading consists of trading and short-term investments in securities, which includes instruments from various countries. These
short-term investments are primarily made to facilitate its treasury management and corporate finance efforts. This has become
an increasingly important part of BCP’s business, as BCP seeks returns on excess liquidity pending improved lending conditions.



37







Lending Policies
and Procedures



The Bank has adopted
a risk appetite framework and established objective metrics and thresholds to periodically monitor the Bank ́s evolving risk
profile. The framework was approved by the Board of Directors, and will be managed and monitored by the Risk Management unit within
the Bank’s Central Risk Management division. The adoption of a risk appetite framework represents the Bank ́s guiding
commitment to align its forward-looking business strategy with its corporate risk vision.



BCP’s uniform
credit policies and approval and review procedures are based upon conservative criteria and are uniformly applied to all of its
subsidiaries. These policies are administered in accordance with guidelines established by Peruvian financial sector laws and SBS
regulations. (See “—(11) Supervision and Regulation—(ii) BCP,” and the guidelines set forth by our board
of directors.)



BCP’s credit
approval process is based primarily on the evaluation of each borrower’s repayment capacity and commercial and banking references.
BCP determines a corporate borrower’s repayment capacity by analyzing the historical and projected financial condition of
the company and of the industry in which it operates. Other important factors that BCP analyzes include the company’s current
management, banking references, past experiences in similar transactions, and collateral to be provided.



For the evaluation
of BCP’s corporate borrowers, credit officers analyze the client’s ability to repay obligations, determine the probability
of default of the client using an internal risk rating model, and define the maximum credit exposure that BCP wants to hold with
the client.



BCP’s individual
and small business borrowers are evaluated taking into account client’s capacity for repayment, a documented set of policies
(including, among other issues, client’s financial track record), and, in most cases, credit scores, which assign loan-loss
probabilities related to the expected return of each market segment. In BCP, about 80% of credit card and consumer loan application
decisions are made by automatic means. The complement, mortgage and small business loan applications decisions, are made by credit
officers who use credit scores and profitability models as an input for their evaluations and report to a centralized unit.



Success in small business
and personal lending areas depends largely on BCP’s ability to obtain reliable credit information about prospective borrowers.
The SBS has an extensive credit bureau which has expanded its credit exposure database service to cover businesses or individuals
with any amount borrowed from Peruvian financial institutions. This database includes information on the loan risk category in
which the borrowers are classified: “Normal,” “Potential Problem,” “Substandard,” “Doubtful”
and “Loss.”



BCP has a strictly
enforced policy with respect to the lending authority of its loan officers. It also has procedures to ensure that these limits
are adhered to before a loan is disbursed. Under BCP’s credit approval process, the lending authority for middle market,
small business, and personal loans is centralized into a specialized credit risk analysis area, whose officers have been granted
lending limits. To ensure that loan officers and credit analysis officers are complying with lending policies, the credit department
and BCP’s internal auditors regularly examine credit approvals, in addition to the controls built into the loan approval
workflow systems.



The following table
briefly summarizes BCP’s policy on lending limits for loan officers and credit risk analysis officers. Requests for credit
facilities in excess of the limits set forth below are reviewed by BCP’s general manager, executive committee or, if the
amount of the proposed facility is sufficiently large, board of directors.



|                                               |  | Risk without collateral or with |                  |  |                     |    
|---------------------------------------------- |  | ------------------------------- | ---------------- |  | ------------------- | ---
|                                               |  | only personal collateral or     |                  |  | Risk with preferred |    
|In US$ thousands                               |  | guarantee                       |                  |  | guarantees (1)      |    
|Board of Directors                             |  |                                 | Regulatory limit |  |                     |    
|Executive Committee                            |  | US$                             | 267,119          |  |                     | US$
|General Manager                                |  | US$                             | 60,000           |  |                     | US$
|Risk Division Manager/ Credit Division Manager |  | US$                             | 13,500           |  |                     | US$
|Credit Risk Manager                            |  | US$                             | 4,500            |  |                     | US$
|Credit Risk Chiefs                             |  | US$                             | 1,800            |  |                     | US$
|Retail Credit Risk Manager                     |  | US$                             | 1,200            |  |                     | US$



38







(1)         Preferred guarantees include
deposits in cash, stand-by letters, securities and other liquid assets with market price, mortgages, non-real estate property guarantees
and assets generated by leasing operations. The limit for the Executive Committee is 10% of the Regulatory Capital of BCP as of
December 2011.



BCP believes that an
important factor in maintaining the quality of its loan portfolio is the selection and training of its loan and risk officers.
BCP requires loan officers to have degrees in economics, accounting or business administration from competitive local or foreign
universities. In addition, the training program consists of a six-month rotation through all of the business-related areas of BCP
and the credit risk analysis area. After the training period is over, trainees are assigned as assistants to loan officers for
a period of at least one year before they can be promoted to loan officers. Loan officers also receive additional training throughout
their careers at BCP. Laterally-hired officers are generally required to have previously held positions as loan officers.



BCP
operates in substantial part as a secured lender. As of December 31, 2011, approximately US$9.4 billion of our loan portfolio and
contingent credits were secured by collateral, which represents 48.9% of the total loan portfolio based upon our unconsolidated
figures, as compared to 45.4% in 2010 and 47.9% in 2009.



Liquid collateral is
a small portion of the total collateral. In general, when BCP requires collateral for the extension of credit, it requires collateral
valued at between 110% and 150% of the principal amount of the facilities granted. The appraisal of illiquid collateral, in particular
real estate assets, machinery and equipment, is performed by independent experts when required for specific reasons.



The existence of collateral
does not affect the loan classification process according to regulations in effect as of December 1998. Pursuant to Peruvian banking
law, secured loans, or the portion thereof covered by collateral, classified in Class “B,” “C,” or “D”
risk categories have a lower loan loss provision requirement for Peruvian accounting purposes. If a borrower is classified as substandard
or below, then BCP’s entire credit exposure to that borrower is so classified.



BCP conducts unannounced
internal audits on borrowers’ financial statements, consistent with local banking regulation of the different jurisdictions
in which it operates.



Deposits



Deposits are principally
managed by BCP’s retail banking group. The main objective of BCP’s Retail Banking Group operations has historically
been to develop a diversified and stable deposit base in order to provide a low-cost source of funding. This deposit base has traditionally
been one of BCP’s greatest strengths. BCP has historically relied on the more traditional, stable, low cost deposit sources,
which it considers to be its core deposits: time, demand deposits, savings and CTS deposits. CTS deposits, or Severance Indemnity
Deposits, are funded by companies in the name of their employees. CTS deposits amount to one month’s salary per year and
may be withdrawn by the employee only upon termination of employment or upon transfer to another bank, subject to certain exceptions.
Exceptions include disposing of 40% of the CTS deposit made in May 2010 and 30% of CTS deposit made in November 2010. Since the
year 2011, employees may dispose 70% of the excess of six gross monthly remunerations.



As of December 31,
2011, deposits represented 71.8% of BCP’s total source funding. BCP’s extensive branch network facilitates access to
this type of stable and low-cost funding. BCP’s corporate clients are also an important source of funding for BCP.



39







Support Areas



BCP’s commercial
banking operations are supported by its Risk Area, which evaluates and helps administer credit relationships, establishes credit
policies and monitors credit risk. See “—(4) BCP and Subsidiaries—(v) Lending Policies and Procedures.”



BCP’s Planning
and Finance Area is in charge of planning, accounting and investor relations functions and is also responsible for analyzing the
economic, business and competitive environment in order to provide the information necessary to support senior management’s
decision-making.



In addition to the
above, BCP’s Administration Group is generally responsible for information technology, quality control, institutional and
public relations, human resources, the legal department, security, maintenance and supplies.



Information Technology



BCP considers its technology
platform to be one of its main competitive strengths and has continued to invest in this area to maintain its competitive position
in the banking sector. BCP’s IT investments and expenses to upgrade and maintain its technological systems totaled US$151.8
million in 2011, US$136.2 million in 2010 and US$120.7 million in 2009. In 2011, IT investments represented 49.5% of the total
IT investments (US$75.1 million), in 2010 they represented 38.1% of the total (US$51.9 million) and in 2009 the participation was
42.2% (US$50.9 million). Of the total investment in 2011, US$ 35.7 million was related to large development projects, US$ 16.2
million related to small development projects, and US$ 23.1 million related to IT infrastructure projects. Among the large projects
it is important to highlight Commercial Management (Huascarán – Retail Banking), Commercial Planning (Sipán
– Wholesale Banking), Treasury (Derivatives Module), Financial Data Model, Teller, SAP Accounting Phase 2, among others.
Small development projects were related to improvements of BCP’s existing software or extend distribution channels. On the
other hand, IT infrastructure projects corresponded to extensions and renewal of existing IT infrastructure and hardware.



As part of BCP’s
“Excellence in Continuous Operations” Program, or ECO Program, BCP completed the construction of a new data center
in Chorrillos during the second quarter of 2011. The La Molina and Chorrillos data centers will operate in an “active-active”
mode, with each system supporting the other. In addition, at the end of 2011 a new decentralized contact center in Trujillo was
completed. We invested a total of US$99.7 million in the Chorrillos and the Trujillo data centers. Both centers are scheduled to
start operations in the first quarter of 2012.



Marketing



BCP continually works
to protect and strengthen the BCP brand. BCP has a proactive attitude towards competition and is focused on change and innovation.
The company promotes its products and services by constantly improving them. In this manner, BCP aims to grow and be a leader in
every retail market by offering the highest possible value for its clients and shareholders. In 2011, BCP continued its strategy
which was based on generating value.



BCP continued to develop
strategies to approach different retail customer groups, by increasing use of Customer Relationship Management (CRM) tools across
all segments. This enabled BCP to reach customers proactively and provide them with personalized offers and terms, in a timely
manner while using cost effective channels and maximizing efficiency.



Another key element
for BCP in creating value is innovation. BCP has launched several innovative products, including new service products for wealthy
customers and new benefits for customers whose wages are paid directly into their BCP accounts. BCP is also constantly evaluating
and improving its internal systems and means of operation and organization in order to achieve leaner and more efficient processes
which help enhanced the experience for our customers. Since 2009 we have continued to implement leaner processes by making adjustments
to branch layouts, tellers, ATM cash management and mortgage lending practices. We have also implemented more standardized and
sustainable commercial practices.



40







Quality service is
a permanent goal for BCP and the company aims to proactively meet or exceed regulations promulgated under the Consumer Protection
Law. BPC has made significant investments in improving service and keeping customers informed about its products and services,
with a special focus on reducing the sources of claims.



Anti-Money Laundering
Policies



Credicorp has an enterprise
wide compliance program in place that meets both our local and international regulatory demands.  This same program is followed
both at our head office and in all the countries in which we operate.  We have in place policies and procedures, controls,
and a risk based approaches that allow us to properly execute our program.



Credicorp’s Corporate
Compliance Officer is responsible for ensuring compliance with all the companies of the Group and therefore has oversight of the
activities of the Compliance Officers of each of the foreign branches (BCP Panama and BCP Miami), foreign affiliates (Atlantic
Security Bank and Credicorp Securities) and foreign subsidiary (BCP Bolivia). These institutions must comply with all regulations
in the countries where they operate, in addition to corporate policies and procedures.



Training is an important
aspect of our program, therefore compliance awareness is done through virtual courses offered to all employees as well as on-site
training sessions for higher risk functions. Another aspect of our program that demonstrates our commitment towards achieving a
high level of compliance is our employee disciplinary action process that ensures employees follow our policies and procedures
and maintain the highest standards of ethical behavior.



Recently, we have added
additional resources to our regulatory Compliance function to strengthen our efforts towards a series of initiatives that continue
to build on our existing program.  These initiatives include reinforcing the anti-corruption, code of ethics, and conflicts
of interest programs across the organization.  The chief Compliance Officer is responsible for reporting compliance matters
to the Board of Directors as well as the Corporate Governance committee.



Our compliance area
has a team of qualified professionals who are certified and have the experience to meet the regulatory challenges ahead both locally
and in the markets we serve.  We are committed to maintaining our solid reputation with our regulators, investors and stakeholders.



Employees



As of December 31,
2011, BCP had 18,616 employees (including 2,359 employees from Edyficar) compared to 16,148 employees as of December 31, 2010 and
16,748 employees as of December 31, 2009.



| | (5) | Atlantic Security Bank
| | --- | ----------------------



Atlantic Security Bank
(ASB), is a Cayman Islands licensed bank that engages in private banking, asset management and proprietary investment. ASB, a wholly-owned
subsidiary of Atlantic Security Holding Corporation, was incorporated in September 1984, in the Cayman Islands and principally
serves Peruvian-based customers. ASB had an international licensee branch in Panama, through which conducts all commercial business.



41







As of December 31,
2011, ASB had total assets of US$1,523.5 million and shareholders’ equity of US$189.2 million (compared with US$1,337.8 million
and US$182.6 million, respectively, as of December 31, 2010). ASB reported a net income of US$41.1 million in 2011, compared with
US$48.9 million in 2010.



ASB’s clients
have traditionally provided a stable funding source, as many are long-time clients who roll-over deposits on a permanent basis.
As of December 31, 2011, ASB had approximately 4,000 clients, 95% of whom are Peruvian. ASB deposits at year-end 2011 reached US$1,320.6
million, up 18% from US$1,117.7 million as of December 31, 2010.



ASB trades on its own
account primarily by making medium-term investments in investment grade fixed-income securities and sovereign debt. Non-investment
grade fixed-income securities represent a distant second in terms of portfolio allocation, while equity and hedge-fund positions,
though present, are even less relevant. As of December 31, 2011, ASB had US$811.6 million at fair value, compared to US$751.6 million
in 2010.



Third-party asset management
is an important activity for ASB. Total AuM (assets under management) reached US$3,193.6 million as of December 31, 2011, compared
to US$3,177.7 million as of December 31, 2010. These assets cover the range from direct unsolicited securities to ASB managed mutual
funds.



ASB also maintains
a sizable loan portfolio. Total loans outstanding were US$606.1 million and US$468.1 million at year-end 2011 and 2010, respectively.
Between 96% and 98% of these loans were guaranteed by the client’s deposits or investments. At the year-end 2011, for example,
only US$8.2 million of this total were unsecured loans. This high level of securitization is reflected in ASB’s low level
of non-performing loans, which is consistently much less than 1% of total loan portfolio. The overwhelming majority of ASB’s
loans are granted to Peruvian individuals and companies, while those that are not are otherwise directed exclusively to Latin American
borrowers.



ASB’s overall
investment strategy, general profile of its investment portfolio and specific investment decisions are reviewed on a weekly basis
by an investment committee. Its credit risk by counterparty, including direct and indirect risk, is evaluated on a consolidated
basis and covers all activities that generate credit exposure such as interbank placements, commercial loans and securities investment.
Market, Liquidity and Operational risks are monitored by ASB’s Risk Management Unit, which in turn reports to and is supervised
by a Corporate Risk Committee, an Asset-Liability Committee and the Board of Directors.



| | (6) | Grupo Pacífico
| | --- | --------------



We conduct our insurance
activities through Pacífico Seguros and its subsidiaries, Pacífico Vida and Pacificosalud EPS S.A. which are collectively
called as Grupo Pacifico. We provide a broad range of insurance products (including property and casualty, life and health). In
2011, the eight most significant business lines collectively generated 80.3% of total premiums written by Grupo Pacífico.
These business lines consisted of automobile, health, medical assistance, life (individual life, credit life, group life, and disability
and survivorship insurance), pension fund underwriting and commercial property damage (fire).



Grupo Pacífico is the second leading
Peruvian insurance company, including private health companies, with a market share of 29.6% based on direct premiums earned in
2011. This market share calculation includes premiums from Pacifico Seguros, Pacifico Vida and Pacificosalud EPS S.A and represents
our total market share in the insurance market and healthcare sector.



Pacífico Seguros
premiums increased 13.5% to US$378.6 million during 2011 from US$333.5 million in 2010 and net premiums earned, net of reinsured
premiums and of technical reserves (as defined below in “―(ii) Claims and Reserves”), were US$228.9 million in
2011, increasing 13.5% compared to 2010.



In 2011 the ratios
for losses and acquisition costs were affected by an increase in competition, particularly in the traditional brokers’ channel.
This has exerted downward pressure on fees and generated an increase in commissions for insurance sales. In comparison to 2010,
the loss ratio increased 4% while the commissions over net earned premiums ratio grew 1.1%.



42







Although our administrative
expenses over net earned premiums ratio continues to be more efficient than that of our competitors, it experienced a decline in
2011 due to the investments that we are making to diversify our distribution channels and bolster Pacífico Seguros’
presence in the provinces. Accordingly, general expenses grew 22% on an annual basis and thus contributed to the drop in net income
from US$28.2 million in 2010 to US$14.2 million in 2011.



Grupo Pacífico’s
businesses in property and casualty and private health are highly concentrated, with a client base of over 34,000 companies and
over 800,000 individuals in the property and casualty and health insurance programs, including individuals affiliated with group
health insurance programs through the companies by which they are employed. As of December 2011, revenues from policies written
for Grupo Pacífico three largest and 20 largest customers represented 8.7% and 25.5% of total premiums in its property and
casualty and health insurance businesses, respectively. Grupo Pacífico property insurance lines are sold through agents,
brokers and its own sales force, while life insurance is sold by its own sales force. The 10 largest brokers in the property and
casualty as well as in the private health segment accounted for approximately 42.7% of total premiums as of December 31, 2011 (compared
to 43.9% as of December 31, 2010).



El Pacífico
Vida (Pacífico Vida) is Grupo Pacífico’s life insurance subsidiary. In 2011, Pacífico Vida recorded
total premiums of US$324 million, a 17.4% increase from total premiums of US$276 million in 2010.



This increase is primarily
a result of higher premiums reported in Credit Life (33.5%), Obligatory Insurance for disability y survivorship (25.2%), and Individual
Life (15.3%) lines. Pacífico Vida performance in these areas was consistent with the improved performance of the Peruvian
life insurance market overall.



Pacífico Vida
reported a 25.9% market share based on direct premiums earned in 2011.



Credit Life which also
involves credit cards and mortgage loans (through the obligatory credit life insurance associated to this type of credits according
to risk policies of banking products), increased its premiums by 33.5% from the end of 2010 to the end of 2011. The strong performance
of Credit Life is in substantial part a result of its partnership with Banco de Crédito (BCP), which allows Pacífico
Vida to access the largest bancassurance channels in Peru.



Disability and survivorship
premiums increased by 25.2% in 2011 compared to 2010. This increase was the result of (i) higher insurance rates in January 2011
(1.09%) and in July 2011 (1.15%) as compared to 2010 (1.06%); and (ii) an increase in monthly insurable income. We currently have
the second highest market share for monthly income insurance in Peru, with 26.8%.



Individual Life premiums
increased by 15.3% in 2011 compared to the prior year, in line with market growth. This result was mainly due to the sale of Seguro
de Vida Inversion Oro and Seguro de Vida Inversión, our improved quality of sales service and the steady development of
our distribution channels, which includes our main channel, the agencies, and our Bancassurance, brokers, sponsors and part time
channels. As a result, we had 38.9% market share, leading the segment.



In our Group Life business,
premiums closed 13.6% above 2010, mainly in our Complementary Work Risk Insurance (SCTR, +26.6% above 2010) and Vida Ley (+25.2%
above 2010) lines. This growth was primarily the result of microeconomic gains experienced across the country, the higher number
of formal businesses and the strong development of the mining and construction industries.



The Individual Annuity
line increased by 7.8% compared to 2010, exceeding the market growth rate of -5.95%. Our outstanding result was mainly due to our
decision to increase our direct sales force in Lima and in other provinces throughout Peru.



Pacífico Vida
generated earnings of US$50 million in 2011.



Pacífico Salud
EPS S.A reported total revenue of US$171.5 million and a net gain of US$2.8 million in 2011, which was mainly due to the acquisition
of certain medical subsidiaries, as described further below. These acquisitions generated an extraordinary expense of approximately
US$2 million. One of our main strategies is to benefit from the fact that demand for health services in Peru has been growing in
line with higher income per capita during recent years; while existing health service providers have been largely unable to keep
pace as a result of the limitations implicit in their corporate and organizational structures. Through this strategy, we also seek
to benefit in the long term from inflationary trends in the health services sector, which have been constant over the past few
years and have led to an 8% increase in average service costs.



43







To accomplish this,
we invested approximately US$82.7 million in the second half of 2011 to create the largest private medical services network in
the country by acquiring majority shares to directly manage: (i) El Golf, San Borja and Oncocare clinics in Lima; (ii) the Galeno
clinics in Arequipa; (iii) Laboratorios ML, a clinical laboratory; and (iv) Doctor+, which is a house call/ambulance service.



Furthermore, another
important step in this strategy was our decision to sign an agreement with Johns Hopkins Medicine International, which is widely
recognized as one of the world’s finest medical institutions. We believe that this alliance will allow us to import health
services and medical care of the highest international standards to Peru.



| | (i) | Underwriting, Clients and Reinsurance
| | --- | -------------------------------------



Underwriting decisions
for substantially all of Pacífico Seguros insurance (property and casualty) risks are made through its central underwriting
office. Pacífico Seguros own risk management staff inspects most medium and medium-to-large commercial risks prior to their
underwriting, whereas third party surveyors are employed to inspect smaller risks. Underwriting standards are approved by the Board
of Directors on a yearly basis.



Pacífico Seguros
transfers risks to reinsurers in order to limit its maximum aggregate potential losses and minimize exposure on large risks. Reinsurance
is placed with reinsurance companies based on the evaluation of the financial capacity of the reinsurer, terms of coverage and
price. Pacífico Seguros principal reinsurers in 2011 were, among others, Lloyd’s, Munich Re, Swiss Re, Hannover Re,
Everest Re, Mapfre Global Risks, BRIT Ins, New Hampshire Ins, Scor, Insurance Company State of Pennsylvania, General Re, Chartis
Insurance U.K, General Re, Berkshire Hathway International Insurance Ltd, W.R. Berkley Insurance (Europe) Ltd. Premiums passed
on to reinsurers represented 16.3% in 2011. Pacífico Seguros acts as a reinsurer on a very limited basis, providing its
excess reinsurance capacity to other Peruvian insurers that are unable to satisfy their reinsurance requirements.



Although Pacífico
Seguros historically has obtained reinsurance for a substantial portion of its earthquake-related risks through excess loss contracts,
there can be no assurance that a major catastrophe would not have a material adverse impact on its results of operations or financial
condition. See “—(ii) Claims and Reserves.”



| | (ii) | Claims and Reserves
| | ---- | -------------------



Net claims paid by
Grupo Pacífico as a percentage of net premiums written (i.e., the net loss ratio) reached 63.9% in 2011, a slight increase
compared to 63.6% in 2010.



The net loss ratio,
in the property and casualty segment, which represented 14.3% of Grupo Pacífico ́s premiums in 2011 (13.5% in 2010),
increased from 50.5% in 2010 to 54.4% in 2011, mainly due to a higher level of competition on the broker channel that exerted a
downward pressure in fees. The net loss ratio from the automobile line, which represented 5% of Grupo Pacífico ́s premiums
in 2011 (4% in 2010) increased from 40.3% in 2010 to 48.8% in 2011. The net loss ratio from the inland transport line, which represented
0.8% of Grupo Pacífico ́s premiums in 2011 (0.5% in 2010) increased from 37.9% in 2010 to 58.5% in 2011. The net loss
ratio of the private health line, which was 5.9% of Grupo Pacífico ́s premiums in 2011 (5.8% in 2010) increased from
70.7% in 2009 to 74.1% in 2010.



The net loss ratio
in the life insurance lines decreased from 66.6% in 2010 to 61.4% in 2011.



44







The net loss ratio
in the health businesses increased from 78.8% in 2010 to 80.4% in 2011 and represented 15.7% of Grupo Pacífico ́s premiums
in 2011 (15.3% in 2010).



Grupo Pacífico
is required to establish (i) claims reserves in respect of pending claims in its property-casualty business, (ii) reserves for
future benefit obligations under its in-force life and accident insurance policies, and (iii) unearned premium reserves in respect
of that portion of premiums written that is allocable to the unexpired portion of the related policy periods (collectively, “Technical
Reserves”). Grupo Pacífico establishes claims reserves with respect to claims when reported, as well as for incurred
but not reported (IBNR) claims. Such reserves are reflected as liabilities in Grupo Pacífico financial statements.



Grupo Pacífico
records as liabilities in its financial statements actuarially determined reserves calculated to meet its obligations under its
life and accident policies and its pension fund underwriting business. These reserves are determined using mortality tables, morbidity
assumptions, interest rates and methods of calculation in accordance with international practices.



Pursuant to SBS regulations,
Grupo Pacífico establishes pre-event reserves for catastrophic risks with respect to earthquake coverage. See “—(11)
Supervision and Regulation—(v) Grupo Pacífico—Reserve Requirements.” In accordance with IFRS principles,
the pre-event reserves and income charges for catastrophic reserves are not considered in Credicorp’s consolidated financial
statements.



Even though Grupo Pacífico
maintains reserves to reduce its exposure, there is always some risk that claims might exceed Grupo Pacífico’s reserves.



| | (iii) | Investment Portfolio
| | ----- | --------------------



Grupo Pacífico’s
investments are made primarily to meet its solvency equity ratio and to provide reserves for its claims. Grupo Pacífico
manages its investments under three distinct portfolios, designed to contain sufficient assets to match the liabilities of the
company’s property and casualty (Pacífico Seguros), life and annuities lines (Pacífico Vida), and health care
lines (Pacífico Salud). Each portfolio is managed under the authority of its own committee, which reviews portfolio strategy
on a monthly basis. Grupo Pacífico’s invests in local and international markets, emphasizing investments in Perú,
U.S. and Latin America. Grupo Pacífico’s has adopted strict policies related to investment decisions. The company ́s
investment strategies and policies are reviewed and approved by Grupo Pacífico’s Board of Directors. Senior management
also takes a leading role in devising investment strategies.



Grupo Pacífico’s
investment strategy also considers an appropriate match of currencies related to its assets and liabilities. A significant portion
of Grupo Pacífico’s premiums is denominated in U.S. Dollars and most of the company’s assets are also invested
in this currency. (In 2011, 77.3% of the gross premiums received by Pacífico Seguros were denominated in U.S. Dollars, compared
to 78.4% in 2010).



As part of its improvement
process, Grupo Pacífico’s has been adjusting its investment policy in order to apply the best international risk management
practices and tools. Grupo Pacífico’s also incorporated the recommendations of Solvencia II and Basel II, with a view
to developing a better match of terms and currencies with the company’s liabilities, especially in connection with obligations
vis-à-vis Grupo Pacífico’s insured customers.



As of December 31,
2011, the market value of Grupo Pacífico’s portfolio (which includes Pacífico Seguros, Pacífico Vida
and Pacífico Salud) was US$1,429.3 million, which included US$103.9 million in equity securities, and US$1,325.3 million
in fixed income instruments. The company ́s real estate investments’ gross book value reached US$33.4 million. The portfolio
is well diversified and it follows an asset-liability management general strategy which is based on the assets (portfolio)
regarding liabilities (reserves): (i) cash flow and duration matching (ii) currency matching and (iii) improve the capital
structure of the company.



45







Grupo Pacífico’s
reported a consolidated financial income in 2011 of US$100.3 million, an increase of 7.9% compared to US$92.9 million in 2010.
This increase is mainly done to the growth of Pacífico Vida’s business lines (especially the life insurance business)
and Pacífico Seguros property and casualty businesses.



Pacífico Seguros
had a market value portfolio of US$162.3 million at year-end 2011 which included equity investments and fixed income instruments.
Pacífico Vida’s market value at year-end 2011 was US$1,256.5 million and mainly consisted of high grade long-term
debt instruments. Furthermore, Pacificosalud EPS S.A had a small portfolio with a market value of US$10.5 million.



Pacífico Seguros’
2011 financial income grew to US$27.1 million, an increase of 10.3% compared to 2010. This improved performance was mainly due
to US$9.4 million in capital gains earned on investments in equity and fixed income markets, which reflected our strategy of maximizing
capital appreciation. Financial income from its fixed income portfolio increased by 7.5% and income from real estate rental fees
increased by 24% in each case compared to 2010.



Pacífico Vida’s
2011 financial income grew to US$71.8 million, an increase of 7.3% compared to 2010. This increase was mainly due to growth in
the annuities business line and the fact that the Peruvian consumer price index growth in 2011, which had a positive effect of
US$4.5 million on inflation adjusted bonds.



| | (7) | Prima AFP
| | --- | ---------



In 2011, the pension
fund market was stable, with less competition for transfers and increased focus on new affiliations. Prima AFP maintained its leading
market position due to a strong value proposal aimed at providing quality information and service to its members.



Strong productivity
by Prima AFP’s sales management helped Prima AFP preserve a high quality portfolio and increase its monthly insurable remuneration
(or RAM), which is the basis of its revenues. Strong productivity also contributed to Prima AFP’s robust market share. With
regard to the collection of contributions, Prima AFP has the largest market share in Peru, at 32.9% as of December 2011.



In the commercial field,
Prima AFP focused on recruiting new affiliates and maintaining its existing affiliate portfolio. Pursuant to in-house estimates
based on revenues, and taking into account the 1.75% administration fee that Prima AFP charges, Prima AFP’s basis remuneration
for revenues increased in 2011. This increase allowed Prima AFP once again to achieve the highest monthly insurable remuneration
(RAM) market share, at 32.2%.



In 2011, Prima AFP’s
pension fund investment portfolio decreased as a result of lower confidence in a global recovery, although at the local level indicators
of the Peruvian economy remained solid. The negative performance of international and local financial markets was reflected in
the value of funds under management, which decreased from US$9.8 billion as of December 2010 to US$9.5 billion as of December 2011.
Given that pension funds are long-term investments, it is best to observe their returns over a long period. Over the last 60 months,
Prima AFP’s annual return was 6.48%, 8.11% and 8.09% for funds 1, 2 and 3. In 2011, Prima AFP registered total revenues of
US$104.4 million and profits of US$32.4 million (under IFRS), a 27.0% year-over-year increase. This was accomplished by expanding
Prima AFP’s revenue base and controlling its operating expenses.



46







| | (8) | Competition
| | --- | -----------



| | (i) | Banking
| | --- | -------



Overview



In recent years, several
foreign companies have showed interest in entering the Peruvian market while financial companies already in Peru have have taken
steps to expand operations and develop new business. In 2006, the Canadian bank with the largest international presence formed
Scotiabank Peru pursuant to a merger between Banco Wiese Sudameris and Banco Sudamericano. In addition, in 2006, one of the largest
financial organizations worldwide entered the Peruvian market for the first time by forming HSBC Bank Peru.



In 2007, a financial
corporation with ten years of operating history received authorization to convert into a bank. That same year, Banco Santander
re-joined the Peruvian banking segment and started operations in October. In 2008, two foreign-owned banks initiated operations
in Peru: Banco Azteca and Deutsche Bank (Peru), a subsidiary of the German bank of the same name. In 2009, Banco del Trabajo, a
subsidiary of Scotiabank, started operations as a finance corporation (Crediscotia Financiera). Finally, in 2010 and 2011 no major
commercial banks entered the Peruvian financial system.



While new entries into
the Peruvian banking system over the last two years have not been as pronounced as entries in previous years, there is evidence
that foreign-owned banks are taking steps to begin operations in the Peruvian market. For example, Itaú Unibanco, Banco
Latinoamericano de Comercio Exterior (Bladex), Morgan Stanley Bank and Bank of Tokyo Mitsubishi have received authorization to
open representative offices in Peru.



Peruvian
Financial System Evolution (2011)



According to the SBS,
as of December 31, 2011, were 61 institutions participating in the Peruvian financial system: 15 commercial banks (10 of which
have over 80% of foreign shareholders’ participation), 10 finance corporations, 34 non-banking micro-finance institutions
and two financial leasing companies. From 2010 to 2011, the number of institutions remained virtually unchanged, with only one
new institution, a new rural savings and loan institution (CRAC).



|Major Peruvian Banks as of December 31, 2011 |  | Assets |      |   | Deposits |  |      | Loans | 
|-------------------------------------------- |  | ------ | ---- | - | -------- |  | ---- | ----- | 
|BCP                                          |  |        | 35.6 | % |          |  | 34   | %     | 
|BBVA Banco Continental                       |  |        | 21.9 | % |          |  | 24   | %     | 
|Scotiabank Perú                              |  |        | 15.5 | % |          |  | 14.5 | %     | 
|Interbank                                    |  |        | 10.4 | % |          |  | 10.3 | %     | 
|Banco Interamericano de Finanzas             |  |        | 2.7  | % |          |  | 3.1  | %     | 

Source: SBS



As of December 31,
2011, BCP ranked first among all Peruvian banks in terms of assets, deposits and loans with a market share of 35.6% of assets,
34% of deposits and 33% of loans.



The Peruvian banking
system reported an outstanding balance of direct loans of S/.62,896 million and US$24,288 million. These figures represented an
annual expansion of 20.3% and 18.8%, respectively. As a result, the dollarization of loans reached 51.0% at the end of 2011. Nevertheless,
as of December 31, 2011, the total amount of deposits was S/.126,071 million, which represented a dollarization rate of 47.3%.



The capital ratio (Regulatory
capital/Risk-weighted assets) reached 13.38% as of December 2011 (above legal minimum = 10% since July, 2011). This represented
a 0.25% decline from the capital ratio reported at the end of December 2010.



47







Peru’s loan portfolio
quality indicators continued improving in 2011. The delinquency ratio reached 1.47%, 2 basis points lower than the ratio reported
as of December 31, 2010. Also, the past-due refinanced and re-structured loans over total loans was 1%, 9 basis points lower than
the figure reported as of December 31, 2010. Similarly, coverage ratio of the past-due loan portfolio was 251.14% as of December
31, 2011.



Finally, the liquidity
of the banking system remained at high and comfortable levels. The local currency liquidity ratio and foreign currency liquidity
ratio closed 2011 at 39.2% and 45%, respectively. These ratio levels were well above the minimums required by regulations adopted
by SBS (8% in local currency and 20% in foreign currency).



| | (ii) | Capital Markets
| | ---- | ---------------



In BCP’s Wholesale
Banking Group, its corporate banking area has experienced increased competition and pressure on margins over the last few years.
This is primarily the result of new entrants into the market, including foreign and privatized commercial banks, as well as local
and foreign investment banks and non-bank credit providers, such as pension fund administrators (or AFPs) and mutual fund companies.



In addition, Peruvian
companies have gained access to new sources of capital through the local and international capital markets. In recent years, AFPs’
funds under management and mutual fund assets have increased at rates over those experienced by the banking system. The private
pension fund reached US$30.4 billion as of December 31, 2011, decreasing by 2.3% since December 31, 2010 (when funds totaled US$31.1
billion). Total mutual funds reached US$5.1 billion in 2011, a 10.4% decrease from US$5.6 billion in 2010 due to the outflow of
funds that occurred in the first half of 2011 and the uncertainty surrounding Peru’s 2011 presidential elections.



| | (iii) | Other Financial Institutions
| | ----- | ----------------------------



Other institutions in the Peruvian financial
system tend to specialize in a given market sector. These institutions include finance companies, municipal and rural savings and
credit associations, municipal public credit associations and savings and credit cooperatives. They mainly issue retail loans to
small and micro-businesses and consumer and mortgage loans to individuals. These markets have shown substantial increases in recent
years. BCP is facing strong competition from these credit providers, primarily with respect to (i) micro-business loans, where
such providers lent US$4.7 billion as of December 31, 2011 (27.2% higher than the US$3.7 billion lent in 2010), representing 48.3%
of the total in the financial system (compared to 48% in 2010); and (ii) consumer loans, where such providers lent US$1.8 billion
in 2011 (28.6% higher than US$1.4 billion in 2010), representing 17.3% of the total in the financial system (compared to 17.4%
in 2010).



BCP also faces strong
competition in its credit card operations from credit cards issued by retail stores.



| | (iv) | Insurance
| | ---- | ---------



The Peruvian insurance
market is highly concentrated. As of December 2011, four companies commanded 83% of the market share in premiums, and the leading
two have a combined market share of 60%. Pacífico Seguros and Pacífico Vida together are the second largest insurance
company in Peru with a 27% market share. Peruvian insurance companies compete principally on the basis of price, as well as on
the basis of brand recognition, customer service and product features. Grupo Pacífico’s insurance businesses believe
that their competitive pricing, strong and positive image, and quality of customer service are significant aspects of their overall
competitiveness. While increased foreign entry into the Peruvian insurance market may put additional pressure on premium rates,
particularly for commercial coverage, Grupo Pacífico believes that in the long-term foreign competition will increase the
quality and strength of the industry. Grupo Pacífico believes that its size and its extensive experience in the Peruvian
insurance market provide it with a competitive advantage over foreign competitors.



48







However, competition
in the Peruvian insurance industry has increased substantially since the industry was deregulated in 1991, with particularly strong
competition in the area of large commercial policies, for which rates and coverage typically are negotiated individually. The loss
by Grupo Pacífico to competitors of even a small number of major customers or brokers could have a material impact on Grupo
Pacífico’s premium levels and market share.



| | (9) | Peruvian Government and Economy
| | --- | -------------------------------



While we are incorporated
in Bermuda, substantially all of BCP’s and Grupo Pacífico’s operations and customers are located in Peru. Although
ASHC is based outside of Peru, a substantial number of its customers are also located in Peru. Accordingly, our results of operations
and financial condition could be affected by changes in economic or other policies of the Peruvian government, which has exercised
and continues to exercise a substantial influence over many aspects of the private sector. Also, our results of operations and
financial condition may be affected by other political or economic developments in Peru, such as a devaluation of the Nuevo Sol
relative to the U.S. Dollar or the imposition of exchange controls by the Peruvian government. See “Item 10. Additional Information—(D)
Exchange Controls.” Our results of operations and financial condition are dependent on the level of economic activity in
Peru.



| | (i) | Peruvian Government
| | --- | -------------------



During the past several
decades, Peru has had a history of political instability that has included military coups d’état and different governmental
regimes, which in the past have frequently intervened in the nation’s economy and social structure. See “Item 3. Key
Information—(D) Risk Factors.”. In 1987, the administration of President Alan García attempted to nationalize
the banking system. Facing an attempt by the state to control BCP, the majority shareholders of BCP at that time sold a controlling
interest in BCP to its employees, which prevented the government from gaining control of BCP. See “—(C) Organizational
Structure.”



Between 1990 and 2000,
President Fujimori implemented a broad-based reform of Peru’s political system, economy and social conditions. See “Item
3. Key Information—(D) Risk Factors.” President Fujimori resigned in 2000 in favor of a transitory government due to
an outbreak of corruption scandals. President Toledo then assumed the presidency in 2001 after a period of political turmoil, facing
high unemployment and underemployment, an economic recession and social need. In 2006, Alan García was elected for a five
year-term, during which remained the main outlines of the economic model, promoting private investment to stimulate the economy.



Presidential elections
were initially held in Peru on April 10, 2011 and a second round of elections was held on June 5, 2011. The winner of the elections
was Ollanta Humala, who defeated Keiko Fujimori. While President Humala’s initial proposals as a candidate were designed
to radically change the economic model that was already in effect, his signing of a "road map", which promised to be
moderate, was important for his electoral victory. Among his first acts as president-elect were the ratification of the Central
Bank’s president and the appointment of Luis Castilla, who served as Deputy Minister under the previous government, as Minister
of Finance. Both of these appointees contributed to recover the investment climate that deteriorated during presidential campaigns
period. However, the recovery has been affected by perceived risks abroad, where the Eurozone is under pressure. Despite the uncertainty
generated during the first half of 2011 (due to the radical changes proposed by Humala) and the global economic slowdown in the
second half of 2011, the Peruvian economy managed to close the year with an economic growth of 6.9%, focused mainly on non-primary
sectors highly linked with domestic demand.



49







Despite the economic
strides achieved since 1990 and the high rate at which Peruvian economy has expanded in the last decade, poverty remains a persistent
problem, with almost 40% of the population living below the poverty line, which the World Bank defines as monthly income of less
than US$60 per capita, adjusted to reflect differences in purchasing power. A significant number of Peruvians live on an income
of less than US$30 per capita per month.



| | (ii) | Peruvian Economy
| | ---- | ----------------



During his second term
(2006-2011), President Alan Garcia continued the market-oriented policies that started in the 1990s with President Fujimori’s
structural reforms. Nevertheless, some interventionist measures were passed due to surge of populist initiatives from Congress
and social pressures from unions and regional movements. In 2011, presidential elections outcome (Ollanta Humala’s victory)
anticipated a shift in government political orientation, which had a negative impact on business confidence and growth perspectives.
Although initial concerns on Humala’s government have been mitigated in part by cabinet appointments and political arrangements
aimed to reassure investor’s confidence and reaffirm economy’s direction, political risks have not disappeared entirely.



In addition to political
changes and the application of sound macroeconomic policies, the positive external outlook allowed Peru to grow at an average of
5.7% in the last decade, reaching a positive growth rate even during the global financial crisis in 2009. In that year, within
a global comparison, Peru was among the countries with the highest GDP-growth rates: 0.9% in a year when global production decreased
1.1%. In the following years of recovery Peru continued outperforming global economy and even developed regions, growing 8.8% in
2010 and 6.9% in 2011.



Peruvian economy went
through moderation in 2011, because of global turmoil arising from debt crisis in the Eurozone, weaker growth in developed countries,
and local factors like political uncertainty associated to presidential elections. The combined effect of these events resulted
in slowdown in private investment growth rates (11.0% after 22.1% in 2010). Nevertheless, consumption showed resilience, maintaining
its dynamism (6.0% after 6.5% in 2010), as negative contribution of foreign sector reflected stronger growth in imports (7.0%)
than exports (4.6%).



During 2007, the Free
Trade Agreement (FTA) with the United States was signed and the trade deal was put into effect on February 1, 2009, concluding
a long process of trade negotiations and goodwill. The FTA made permanent the special access to the U.S. market enjoyed under the
Andean Trade Promotion and Drug Eradication Act. The current trade between these countries is around
US$13 billion annually (15.7% of total trade). The FTA is expected to encourage higher export growth and diversification,
as well as accelerate reforms that will further enhance the investment climate in Peru, which is already benefiting from high flows
of foreign direct investment. Progress was made toward reaching more trade agreements with Peru’s most important trade partners
like China (the FTA started in march 2010), which currently stands as the first destiny of Peruvian exports, mainly commodities
and primary goods. In 2011, trade between both countries reached US$13.2 billion (16.1% of total trade). Also, Peru concluded trade
agreement negotiations with European Union, Japan and Mexico, and all of them are supposed to start in the first half of 2012.
It is expected that after solving the uncertainty about global economy, these agreements will help boost growth in the export sector,
which since 2008 is relatively flat compared to the buoyancy registered in domestic demand.



Peru’s trade
surplus in 2011 was US$9.3 billion, surpassing the 2010 surplus of US$6.7 billion. This trade surplus was the result of a sizeable
increase in exports, which reached approximately US$46.3 billion, a historic record, though imports also grew as the domestic economy
expanded at a more moderate pace. Exports in 2011 increased 30.1%, based mostly on higher commodity prices, while imports increased
28.3%, due to growth in domestic demand.



Peru has had a history
of high and persistent current account deficits. Nevertheless, a process of gradual correction of external imbalances started in
recent years. Between 2007 and 2011, Peru’s current account balance reached an average deficit of US$2.1 billion, which is
equivalent to 1.3% of GDP. After a brief interruption in 2008, when the deficit again reached high levels (US$5.3 billion, or 4.2%
of GDP), and a small surplus in 2009 (0.2 % of GDP) due to a decrease in imports and in investment income (in a context of global
slowdown), the correction process took place again. In 2011, Peru again recorded a deficit, this time in the amount of US$4.7 billion
(2.5% of GDP) due to a trade deficit that was financed by long-term capital inflows.



50









Peru’s
financial account had an average surplus of US$8.1 billion between 2007 and 2011, reflecting higher foreign direct investment
and long-term loans, which reflects the improvement on investor’s perception of Peru’s economic perspective. The exception
was the decrease of surplus in 2009 (US$1.5 billion), due to lower capital inflows in a context of global uncertainty, mainly
in the first half of the year, but it was enough to reverse the current account deficit. In 2010 and 2011, recovery in capital
inflows gradually restored high financial account surpluses, when investors adjusted their risk appetite and reassessed risks
in emerging countries, which proved to have solid foundations during the crisis. Nevertheless, stress episodes associated with
the Eurozone fiscal crisis, including the bailouts of Ireland and Portugal in 2010 and 2011, respectively, and Greece’s
recent debt restructuring negotiations during the second half of 2011, continue to have negative effects on investment inflows
into Peru.



Inflation
in Peru, as measured by the Lima consumer price index, was 3.5% on average over the past five years. After reducing the Peruvian
Central Bank's target of 2.5% to 2.0%, with a +/-1% range, inflation was above the target range in 2007 and 2008, registering
3.93% and 6.65% respectively influenced by higher international commodity prices. As of December 31, 2010 the inflation rate was
2.1%, compared to a 0.25% inflation rate at the end of 2009. Inflation in 2011 was 4.7%, significantly above the Central Bank’s
inflation range, driven by external supply shocks (higher commodity prices) as well as local supply shocks (less local food supply).



The
exchange rate for Nuevos Soles in Peru has appreciated 15.6% over the past five years, from S /. 3.20 per US$1.00 on December
31, 2006 to S /. 2.696 per US$ 1.00 on December 31, 2011. In the past two years, the Nuevo Sol has posted gains of 2.8% in 2010
and 3.9% in 2011. The appreciation of the Nuevo Sol was substantially due to capital inflows to emerging economies in a volatile
market environment due to economic and debt problems in the EU. In 2011, the Nuevo Sol strengthened overall, but underwent periods
of depreciation following the political uncertainty associated with the presidential elections and uncertainty in international
markets.



The
sound policy framework put in place in recent years and the increase in international reserves have contributed to significantly
reduce Peru’s economic vulnerabilities and poverty (even though poverty still affects to over 30% of the population) and
enhance its business environment. Peru’s strong fiscal surpluses in recent years, the recent moderate deficit due to countercyclical
policies notwithstanding, have also supported a significant reduction in public debt and improved maturity structure. In the current
uncertain global outlook, these are important fiscal buffers. A sound monetary policy, well-established in a framework that targets
inflation, has also been instrumental in helping to maintain macroeconomic stability and reduce dollarization. Structural reforms
have reduced Peru’s fiscal and financial vulnerabilities. Free trade agreements and the search of new markets to open new
trade destinations, lower informality, and improvement in the business climate have helped improve Peru’s long-term growth
prospects, which are reflected in a higher investment and a higher potential growth.



These
achievements are believed to have placed Peru in a strong position to face any future deterioration in external conditions, should
that be the case. Building on Peru’s strong fundamentals, including a resilient financial system, several measures have
been implemented by the authorities that will help to limit spillovers, preserve adequate liquidity conditions in the domestic
markets, and bolster domestic confidence. The Peruvian financial system has proven to be strong, despite the impact of the global
financial crisis. Credit, which averaged a 31.8% growth in 2007 and 2008, lost momentum, closing 2009 with only a 9.5% growth.
The economic recovery in Peru has increased demand for banking credit, which, in 2010, grew by 18.1% and 22.9% in 2011.



Peruvian
authorities have been implementing reforms to strengthen the financial system and improve the country’s international liquidity
position compared with that observed during the crisis. Under an adverse scenario, the Peruvian Central Bank could use its high
availability of foreign reserves, which have risen from 25.8% of GDP in December 2007 to approximately 28.6% in December 2011
and other mechanisms to provide necessary liquidity to the domestic financial system. Also, the increase in the capital ratio
of the financial system from 11.7% in December, 2007 to 13.4% in September, 2011 reflects that solvency has improved.



The
near term domestic economic outlook continues to appear to be favorable, despite lingering uncertainty about the global economy.
The pace of economic growth is expected to be around 5.5% in 2012, reflecting a weaker global economic growth and a moderation
in domestic demand. Inflation is expected to remain around the 2% (+/- 1%) target range.



51







The
main risks to the Peruvian economy appear to be external and largely related to the results of the continued economic recovery
in developed countries. Peru’s current fiscal position, including the 2011 surplus, the amount of funds accumulated by the
public sector (US.$ 5.6 billion as of December 31, 2011), and the fact that the country is now rated investment grade (BBB according
to S&P and Fitch, Baa3 according to Moody's but with a positive outlook) is considered to to have strengthened Peru’s
ability to withstand future crises Peru’s medium-term prospects are considered to be favorable provided that the country
continues to follow prudent macroeconomic policies and deal with longstanding structural challenges.



| | (10) | The
                                                                       Peruvian Financial System
| | ---- | ----------------------------------------------------------------------------------------------------



As
our activities are conducted primarily through banking and insurance subsidiaries operating in Peru, a summary of the Peruvian
financial system is set forth below.



| | (i) | General
| | --- | -------



On
December 31, 2011, the Peruvian financial system consisted of the following principal participants: the Central Bank, the SBS,
15 banking institutions (not including Banco de la Nación, a Peruvian state-owned bank), 10 finance companies, and 2 leasing
companies. In addition, Peru has various mutual mortgage associations, municipal and rural savings and credit associations, municipal
public credit associations and savings and credit cooperatives, which totaled 34 entities as of December 31, 2011.



Law
26702 regulates Peruvian financial and insurance companies. In general, it provides for tighter loan loss reserve standards, brings
asset risk weighting in line with Basel Committee on Banking Regulations and Supervisory Practices of International Settlements
(or the Basel Accord) guidelines, broadens supervision of financial institutions by the SBS to include holding companies, and
includes specific treatment of a series of recently developed products in the capital markets and derivatives areas.



| | (ii) | Central
                                                                       Bank
| | ---- | -----------------------------------------------------------------------------------



The
Central Reserve Bank (or the Central Bank) was established in 1922. Pursuant to the Peruvian Constitution, its primary role is
to ensure the stability of the Peruvian monetary system. The Central Bank regulates Peru’s money supply, administers international
reserves, issues currency, determines Peru’s balance of payments and other monetary accounts, and furnishes information
regarding the country’s financial situation. It also represents the government of Peru before the IMF and the Latin American
Reserve Fund (a financial institution whose purpose is to provide balance of payments assistance to its member countries by granting
credits or guaranteeing loans to third parties).



The
highest decision-making authority within the Central Bank is its seven-member board of directors. Each director serves a five-year
term. Of the seven directors, four are selected by the executive branch and three are selected by the Congress. The Chairman of
the Central Bank is one of the executive branch nominees but must be approved by Peru’s Congress.



The
Central Bank’s board of directors develops and oversees monetary policy, establishes reserve requirements for entities within
the financial system, and approves guidelines for the management of international reserves. All entities within the financial
system are required to comply with the decisions of the Central Bank.



| | (iii) | SBS
                                                                        (The Superintendency of Banks, Insurance and Pension Funds)
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------



The
SBS, whose authority and activities are discussed in “—(11) Supervision and Regulation,” is the regulatory authority
in charge of implementing and enforcing Law 26702 and, more generally, supervising and regulating all financial, insurance and
pension fund institutions in Peru.



52







In
June 2008, Law 1028 and 1052 were approved modifying Law 26702 with the following objectives: (i) to strengthen and to increase
competitiveness, (ii) to implement Basel II and (iii) to adapt the current regulatory framework to the Agreement of Commercial
Promotion, APC, signed between Peru and the United States.



The
main amendments defined in Law 1028 were designed to promote the development of Peruvian capital markets by extending the range
of financial services that could be offered by microfinance institutions (i.e., non-banks) without requiring SBS authorization.

Law
1028 also modified the framework in which the Peruvian financial system is to be harmonized with the new international standards
established by the Basel II Accord (which aims to minimize the issues regarding regulatory arbitrage). Since July 2009, Peruvian
financial institutions apply the standardized method to calculate their capital requirement related to credit, market and operational
risk. Also, from July 2009, the SBS started receiving applications to use Internal Models Methods for any of these three risks.
Meanwhile, if an institution requires lower capital using its internal models than by using the current approach, it will have
to maintain between 80% and 95% of the higher amount during the first years.



Law
1052 aims to include and synchronize Law 26702 and the APC’s framework, particularly regarding insurance services. The amendments
allow offering cross-border services and have simplified the process for international institutions to enter into the Peruvian
market by establishing subsidiaries.



| | (iv) | Financial
                                                                       System Institutions
| | ---- | ----------------------------------------------------------------------------------------------------



Under
Peruvian law, financial system institutions are classified as banks, financing companies, other non-banking institutions, specialized
companies and investment banks. BCP is classified as a bank.



Banks



A
bank is defined by Law 26702 as an enterprise whose principal business consists of (i) receiving money from the public, whether
by deposits or by any other form of contract, and (ii) using such money (together with the bank’s own capital and funds
obtained from other sources) to grant loans or discount documents, or in operations that are subject to market risks.



Banks
are permitted to carry out various types of financial operations, including the following: (i) receiving demand deposits, time
deposits, savings deposits and deposits in trust; (ii) granting direct loans; (iii) discounting or advancing funds against bills
of exchange, promissory notes and other credit instruments; (iv) granting mortgage loans and accepting bills of exchange in connection
with the mortgage loans; (v) granting conditional and unconditional guaranties; (vi) issuing, confirming, receiving and discounting
letters of credit; (vii) acquiring and discounting certificates of deposit, warehouse receipts, bills of exchange and invoices
of commercial transactions; (viii) performing credit operations with local and foreign banks, as well as making deposits in those
institutions; (ix) issuing and placing local currency and foreign currency bonds, as well as promissory notes and negotiable certificates
of deposits; (x) issuing certificates in foreign currency and entering into foreign exchange transactions; (xi) purchasing banks
and non-Peruvian institutions which conduct financial intermediation or securities exchange transactions in order to maintain
an international presence; (xii) purchasing, holding and selling gold and silver as well as stocks and bonds listed on one of
the Peruvian stock exchanges and issued by companies incorporated in Peru; (xiii) acting as financial agent for investments in
Peru for external parties; (xiv) purchasing, holding and selling instruments evidencing public debt, whether internal or external,
as well as obligations of the Central Bank; (xv) making collections, payments and transfers of funds; (xvi) receiving securities
and other assets in trust and leasing safety deposit boxes; and (xvii) issuing and administering credit cards and accepting and
performing trust functions.



53







In
addition, banks may carry out financial leasing operations by forming separate departments or subsidiaries. Banks may also promote
and direct operations in foreign commerce, underwrite initial public offerings, and provide financial advisory services apart
from the administration of their clients’ investment portfolios. By forming a separate department within the bank, banks
may also act as trustees in trust agreements.



Law
26702 authorizes banks to operate, through their subsidiaries, warehouse companies, securities brokerage companies, and to establish
and administer mutual funds.



Branches
of foreign banks enjoy the same rights and are subject to the same obligations as Peruvian banks. Multinational banks, with operations
in various countries, may perform the same activities as Peruvian banks, although their foreign activities are not subject to
Peruvian regulations. To carry out banking operations in the local market, multinational banks must maintain a certain portion
of their capital in Peru, in at least the minimum amount that is required for Peruvian banks.



Finance
Companies



Under
Law 26702, finance companies are authorized to carry out the same operations as banks, with the exception of (i) issuing loans
as overdrafts in checking accounts and (ii) participating in derivative operations. These operations can be carried out by finance
companies only if they fulfill the requirements stated by the SBS.



Other
Financial Institutions



The
Peruvian financial system has a number of less significant entities which may provide credit, accept deposits or otherwise act
as financial intermediaries on a limited basis. Leasing companies specialize in financial leasing operations where goods are leased
over the term of the contract and in which one party has the option of purchasing the goods at a predetermined price. Savings
and loans associations or cooperatives may accept certain types of savings deposits and provide other similar financial services.



Peru
also has numerous mutual housing associations, municipal savings and credit associations, savings and credit cooperatives and
municipal credit bureaus. Over the past five years the entry of new participants, including foreign banks and non-bank financial
institutions, has increased the level of competition in Peru.



Insurance
Companies



Since
the Peruvian insurance industry was deregulated in 1991, insurance companies have been authorized to conduct all types of operations
and to enter into all forms of agreements that are needed to offer risk coverage to customers. Insurance companies may also invest
in financial and non-financial assets, although they are subject to the regulations on investments and reserves established in
Law 26702 and the regulations issued by the SBS.



Law
26702 is the principal law governing insurance companies in Peru. The SBS is charged with the supervision and regulation of all
insurance companies. The formation of an insurance company requires prior authorization of the SBS.



The
insurance industry has experienced consolidation in recent years with the number of companies decreasing from 19 in 1991 to 14
in 2011.



| | (11) | Supervision
                                                                       and Regulation
| | ---- | -------------------------------------------------------------------------------------------------



| | (i) | Credicorp
| | --- | ---------



Currently
there are no applicable regulations under Bermuda law that are likely to materially impact our operations as they are currently
structured. Under Bermuda law, there is no regulation applicable to us, as a holding company that would require that we separate
the operations of our subsidiaries incorporated and existing outside Bermuda. Since our activities are conducted primarily through
our subsidiaries in Peru, the Cayman Islands and Bolivia, a summary of Peruvian banking and insurance regulations and Cayman Islands
banking regulations is set forth below.



54







Our
common shares are listed on the New York Stock Exchange (NYSE). We are therefore subject to regulation by the NYSE and the Securities
and Exchange Commission (SEC) as a “foreign private issuer.” We also must comply with the Sarbanes-Oxley Act of 2002.



We
are, along with BCP, subject to certain requirements set forth in Peruvian Law 26702 (“Peruvian Banking Law” or “Law
26702”) as well as certain banking statutes issued by the Peruvian banking regulator, SBS, including SBS Resolution No.
11823-2010, enacted in September 2010 and which approved the “Regulation of the Consolidated Supervision of Financial and
Mixed Conglomerates.” These regulations affect BCP and us primarily in the areas of reporting, risk control guidelines,
limitations, ratios and capital requirements.



Since
our common shares are listed on the Lima Stock Exchange in addition to the New York Stock Exchange, we are subject to certain
reporting requirements to Superintendencia del Mercado de Valores , the Peruvian securities market regulator, and the Lima Stock
Exchange. See “Item 9. The Offer and Listing—(C) Markets—The Lima Stock Exchange—(ii) Market Regulation.”



| | (ii) | BCP
| | ---- | ---



Overview



BCP’s
operations are regulated by Peruvian law. The regulations for the operation of the Peruvian financial sector are stated in Law
26702. The SBS periodically issues resolutions that cause Law 26702 to be developed. See “—(10) The Peruvian Financial
System.” The SBS supervises and regulates entities that Law 26702 classifies as financial institutions. These entities include
commercial banks, finance companies, small business finance companies, savings and loan corporations, financial services companies
such as trust companies and investment banks, and insurance companies. Financial institutions must seek the SBS’s authorization
before beginning operations.



BCP’s
operations are supervised and regulated by the SBS and the Central Bank. Those who violate Law 26702 and its underlying regulations
are subject to administrative sanctions and criminal penalties. Additionally, the SBS and the Central Bank have the authority
to issue fines to financial institutions and their directors and officers if they violate the laws or regulations of Peru, or
their own institutions’ bye-laws.



The
Superintendencia del Mercado de Valores (SMV), formerly known as CONASEV, is the Peruvian government institution in charge of
(i) promoting the securities market, (ii) making sure fair competition takes place in the securities markets, (iii) supervising
the management of businesses that trade in the securities markets and (iv) regulating their activities and accounting practices.
BCP must inform SMV of significant events that affect its business and is required to provide financial statements to it and the
Lima Stock Exchange each quarter. BCP is also regulated by SMV through Credibolsa, which is BCP’s wholly-owned brokerage
house, and Credifondo, which is BCP’s wholly-owned mutual fund administration company. SMV examines Credibolsa and Credifondo
on a regular basis.



Under
Peruvian law, banks may conduct brokerage operations and administer mutual funds but must do so through subsidiaries. However,
bank employees may market the financial products of the bank’s brokerage and mutual fund subsidiaries. Banks are prohibited
from issuing insurance policies, but are not prohibited from distributing insurance policies issued by insurance companies.



55







Authority
of the SBS



Peru’s
Constitution and Law 26702 (which contains the statutory charter of the SBS) grant the SBS the authority to oversee and control
banks and financial institutions (with the exception of brokerage firms, which are regulated by SMV – Superintendencia del
Mercado de Valores), insurance and reinsurance companies, companies that receive deposits from the general public, pension funds
private administrators (“AFPs”) and other similar entities as defined by the law. The SBS is also responsible for
supervising the Central Bank to ensure that it abides by its statutory charter and bye-laws.



The
SBS has administrative, financial and operating autonomy. Its objectives include protecting the public interest, ensuring the
financial stability of the institutions over which it has authority and punishing violators of its regulations. Its responsibilities
include: (i) reviewing and approving, with the assistance of the Central Bank, the establishment and organization of subsidiaries
of the institutions it regulates; (ii) overseeing mergers, dissolutions and reorganization of banks, financial institutions and
insurance companies; (iii) supervising financial, insurance and related companies from which information on an individual or consolidated
basis is required, through changes in ownership and management control (this supervision also applies to non-bank holding companies,
such as us); (iv) reviewing the bye-laws and amendments of bye-laws of these companies; (v) issuing criteria governing the transfer
of bank shares, when permitted by law, for valuation of assets and liabilities and for minimum capital requirements; and (vi)
controlling the Central de Riesgos (Bank Risk Assessment Center), to which all banks are legally required to provide information
regarding all businesses and individuals with whom they deal without regard to the amount of credit risk (the information provided
is made available to all banks to allow them to monitor individual borrowers’ overall exposure to Peru’s banks). In
addition to them, the SBS is also responsible for stating the criteria relating to the existence of financial or mixed conglomerates
in Peru and their supervision. As a result of it, despite its supervision of BCP, the SBS
also supervises Credicorp Ltd. on the basis that we are a financial conglomerate conducting the majority of our operations in
Peru.



Management
of Operational Risk



SBS
Resolutions No. 006-2002 and 37-2008 established guidelines for operational risk management, which includes a broad range of risks
and defines operational risks as those resulting from the possibility of suffering financial losses due to inadequate or failed
internal processes, people and systems, or from adverse external events. It also establishes responsibilities for developing policies
and procedures to identify, measure, control and report such risks. Banks are required to adequately manage risks involved in
the performance and continuity of their operations and services in order to minimize possible financial losses and reputation
damage due to inadequate or non-existent policies or procedures.



Credicorp,
following these SBS guidelines, as well as the guidelines issued by the Basel Committee on Banking Supervision, and the advice
of international consultants, has appointed a specialized team responsible for operational risk management across our organization.
This team reports regularly to our risk committee, top managers and Board of Directors.



In
evaluating operational risks and potential consequences, we mainly assess risks related to critical processes, new products, critical
suppliers, critical information assets and technological components. To support the operational risk management process we have
developed a business continuity management (BCM) discipline, which involves the implementation of continuity plans for critical
business processes, incident management, and training and testing. In addition, we have developed procedures to register, collect,
analyze and report operational risk losses, looking forward to the implementation of advanced models for operational risk capital
allocation. Lastly, we have a monitoring and reporting team, whose main objective is to follow up action plans and monitor Key
Risk Indicators (KRI) and other performance metrics.



We
intend to be guided by the risk control standards of international financial institutions that are noted for their leadership
in this field. Our overall objective is to implement an efficient and permanent monitoring system to control operational risks,
while the actual management of risk control procedures is conducted by the areas that carry out critical activities.



56







Pursuant
to Section 404 of the Sarbanes-Oxley Act of 2002, we are required to make certain certifications regarding our internal controls
over financial reporting as of December 31, 2011. We have developed internal methods to identify and evaluate risk and controls
over our critical processes to determinate how effective internal controls are over financial reporting.



Capital
Adequacy Requirements



Capital
adequacy requirements applicable to us are set forth in the Peruvian Banking Law (Law 26702), as amended, and monitored and regulated
by the SBS. Law 26702 was enacted in December 1996 and amended in June 2008 through Legislative Decree 1028. The amendment became
effective in July 2009 and was aimed at adapting the Peruvian Banking Law to the capital guidelines and standards established
by the second Basel Accord (Basel II).



Basel
II standards modified the methodology to measure credit, market and operational risks to allow the use of standardized and internal
model-based methods. Basel II standards also allow Peruvian financial institutions to request authorization from the SBS to implement
an internal ratings-based (“IRB”) methodology.



Financial
institutions that receive approval from the SBS to use the IRB methodology are subject to regulatory capital floors. The amount
of capital required may not be less than the percentage of capital required under an alternative methodology.



|                                                           |  | First Year |    |   | Second Year |  |    | Third Year | 
|---------------------------------------------------------- |  | ---------- | -- | - | ----------- |  | -- | ---------- | 
|Basic IRB and Internal Models
    of Credit Risk           |  |            | 95 | % |             |  | 90 | %          | 
|Advanced Models of Credit Risk and/or
    Operational Risk |  |            | 90 | % |             |  | 80 | %          | 



Prior
to June 2009, the capital requirements were based upon the guidelines established by the first Basel Accord (Basel I). Financial
institutions were required to limit risk-weighted assets to 11 times their regulatory capital (“patrimonio efectivo”),
which is equivalent to a minimum capital ratio of 9.09% of risk-weighted assets. Risk-weighted assets were calculated based upon
five risk categories depending on the perceived risk of each asset class.



Pursuant
to the Basel II guidelines, financial institutions are required to hold regulatory capital (“patrimonio efectivo”)
that is greater than or equal to the sum of (i) 10% of credit risk-weighted assets, and (ii) 10 times the amount required to cover
market and operational risks. The new minimum capital requirements were implemented as follows.



|Implementationdate |  | Regulatory capital
    (% of total weighted assets) |     |   | Total risk-weighted assets
|------------------ |  | --------------------------------------------------- | --- | - | --------------------------
|July 1st,
    2009 |  |                                                     | 9.5 | % |                           
|July 1st, 2010     |  |                                                     | 9.8 | % |                           
|July 1st, 2011     |  |                                                     | 10  | % |                           



57







On
November 2010, the SBS released a consultative document, which established the proposed methodologies for calculating additional
capital requirements consistent with Pilar 2 of Basel II and certain aspects of Basel III. Comments on this document were due
February 18, 2011. On July 20, 2011, the SBS issued SBS Resolution 8425-2011, establishing the final methodologies and the implementation
schedule of the aforementioned additional capital requirements. The new capital requirements, which are aimed at covering risks
not contemplated in Pilar I of Basel II, include requirements to cover concentration, interest rate and systemic risk. Additionally,
pro-cyclical capital requirements were also established. These new requirements will be implemented over a period of five years
starting in July 2012.



Article
184 of Law 26702, as amended by Legislative Decree 1028, provides that regulatory capital may be used to cover credit risk, market
risk and operational risk. Regulatory capital is comprised of the sum of basic capital and supplementary capital, and is calculated
as follows:



| | • | Basic
                                                                  Capital: Basic Capital or Tier 1 capital is comprised of: (i)
                                                                  paid-in-capital (which includes common stock and perpetual non-cumulative
                                                                  preferred stock), legal reserves, supplementary capital premiums,
                                                                  voluntary reserves distributable only with prior SBS approval,
                                                                  and retained earnings with capitalization agreements (earnings
                                                                  that the shareholders or the Board of Directors, as the case
                                                                  may be, have committed to capitalize as common stock); (ii)
                                                                  other elements that have characteristics of permanence and loss
                                                                  absorption that are in compliance with regulations enacted by
                                                                  the SBS, such as hybrid securities; and (iii) unrealized gains
                                                                  and retained earnings in Subsidiaries. Items deducted from Tier
                                                                  1 capital include: (i) current and past years’ unrealized
                                                                  losses; (ii) deficits of loan loss provisions; (iii) goodwill
                                                                  resulting from corporate reorganizations or acquisitions; and
                                                                  (iv) half of the amount referred to in “Deductions”
                                                                  below. Absent any Tier 2 capital, 100% of the amount referred
                                                                  to in “Deductions” below must be deducted from Tier
                                                                  1 capital. The elements referred to in item (ii) above should
                                                                  not exceed 17.65% of the amount resulting from adding components
                                                                  (i) and (iii) of Tier 1 capital net of the deductions in (i),
                                                                  (ii) and (iii) in this paragraph.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Supplementary
                                                                  Capital: Supplementary capital is comprised of the sum of Tier
                                                                  2 and Tier 3 capital. Tier 2 capital elements include: (i) voluntary
                                                                  reserves that may be reduced without prior consent from the
                                                                  SBS; (ii) the eligible portion of redeemable subordinated debt
                                                                  and of any other components that have characteristics of debt
                                                                  and equity as provided by the SBS; (iii) for banks using the
                                                                  Standardized Approach Method (SAM), the generic loan loss provision
                                                                  up to 1.25% of credit risk-weighted assets; or, alternatively,
                                                                  for banks using the Internal Ratings-Based Method (IRB), the
                                                                  generic loan loss provision up to 0.6% of total credit risk-weighted
                                                                  assets (pursuant to article 189 of the Law); and (iv) half of
                                                                  the amount referred to in “Deductions” below. Tier
                                                                  3 capital is comprised of redeemable subordinated debt that
                                                                  is incurred with the exclusive purpose of covering market risk,
                                                                  as referred to in Article 233 of the Law.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Deductions:
                                                                  The following elements are deducted from Tier 1 and Tier 2 capital:
                                                                  (i) all investments in shares and subordinated debt issued by
                                                                  other local or foreign financial institutions and insurance
                                                                  companies; (ii) all investments in shares and subordinated debt
                                                                  issued by an affiliate with which the bank consolidates its
                                                                  financial statements, including its holding company and such
                                                                  subsidiaries referred to in Articles 34 and 224 of the Law;
                                                                  (iii) the amount in which an investment in shares issued by
                                                                  a company with which the bank does not consolidate its financial
                                                                  statements and which is not part of the bank’s negotiable
                                                                  portfolio, exceeds 15% of the bank’s regulatory capital;
                                                                  (iv) the aggregate amount of all investments in shares issued
                                                                  by companies with which the bank does not consolidate its financial
                                                                  statements and which are not part of the bank’s negotiable
                                                                  portfolio, exceeds 60% of the regulatory capital; (v) when applicable,
                                                                  the amount resulting from the formula prescribed in Article
                                                                  189 of the Law. For the purposes herein, “regulatory capital”
                                                                  excludes the amounts referred to in (iii), (iv) and (iv) of
                                                                  this paragraph.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



58







Article
185 of the Law 26702 also provides that the following limits apply when calculating regulatory capital: (i) the aggregate amount
of supplementary capital must not exceed the aggregate amount of basic capital; (ii) the amount of redeemable Tier 2 subordinated
instruments must be limited to 50% of the amount resulting from the sum of Tier 1 elements net of the deductions in (i), (ii),
and (iii) in “Basic Capital” above; (iii) the amount of Tier 3 capital must be limited to 250% of the amount resulting
from the sum of Tier 1 elements net of the deductions (i), (ii), and (iii) in “Basic Capital” above in the amounts
assigned to cover market risk.



As
of December 31, 2011, BCP’s regulatory capital was 14.53% of unconsolidated risk-weighted assets, which is equivalent to
having risk-weighted assets that are 6.88 times the amount of regulatory capital.



Legal
Reserve Requirements



In
accordance with Peruvian regulation - article 67 of Law 26702-, 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 million, US$369.3 million and US$242.9
million, respectively.



Provisions
for Loan Losses



The
SBS has authority to establish loan reserves and issue guidelines for the provision of loan losses of Peruvian credit institutions,
including commercial banks. SBS Resolution No. 41-2005, enacted in January 2005, requires additional provisions for loans subject
to foreign exchange risk, which are recorded for local purposes. Since July 2010, SBS Resolution No. 11356-2008 has required commercial
banks to implement a new framework for the assessment and classification of debtors. The resolution also required the establishment
of pro-cyclical provisions starting December 2008. In September 2009, the SBS cancelled the requirement of “procyclical”
provisions, but in September 2010 a new SBS resolution reinstated this kind of provisions. We estimate and record our allowance
for loan losses according to the criteria set out in IAS 39, adjusting the local provisions as necessary. See Notes 3(f)(ii) and
3(i) to the Consolidated Financial Statements.



Provisions
for Country Risk



SBS
Resolution No. 505-2002 requires the establishment of provisions for exposure to country risk, which includes sovereign risk,
transfer risk and expropriation or nationalization risk that may affect operations with companies or individuals in foreign countries.
The SBS has also established guidelines for the procedures and responsibilities for management of country risk.



Central
Bank Reserve Requirements



Under
Law 26702, banks and financial institutions are required to maintain legal reserve requirements for certain obligations. The changes
in the reserve requirement regulations were made in the second half of 2010 in accordance with the monetary policy adopted by
the Central Bank.



59







The
Central Bank requires financial instructions to maintain marginal reserve requirements for obligations for local and foreign currency
obligations. The exact level and method of calculation of the reserve requirement is established by the Central Bank. The reserve
requirements in Peru apply to obligations such as demand and time deposits, savings accounts, securities, certain bonds and funds
administered by the bank. Additionally, the Central Bank requires reserves on amounts due to foreign banks and other foreign financial
institutions. Furthermore, as of January 2011, obligations of foreign subsidiaries and affiliates are also subject to the reserve
requirement. Funding from the public sector directed to the microfinance sector and foreign credits with periods of 2 years or
more are not subject to the regulation, among other exemptions.



In
2011, the Central Bank, as a part of its monetary policy to restrict internal demand and the risk of inflation, maintained the
minimum level of reserves for banks at 9%. Bank obligations are subject to a marginal reserve ratio of 55% in foreign currency
and 25% in local currency. The reserve funds can be constituted by cash and deposits, with a minimum of 3% held in deposits in
current accounts in the Central Bank. Additionally, the marginal reserve requirement on foreign credits with a tenor of less than
2 years has remained at 60% since January 2011.



The
Central Bank establishes a remuneration rate on the marginal reserves, those that exceed the minimum legal requirement of 9%,
only if such reserves are deposited in the Central Bank’s current account. Foreign currency cannot be used to comply with
reserve requirements for liabilities in domestic currency, and vice versa. The Central Bank oversees compliance with the reserve
requirements.



The
reference interest rate is periodically revised by the Central Bank in accordance with its monetary policy objectives. Once a
month the board of directors of the Central Bank approves and announces the Monetary Program through a press release. The reference
interest rate increased in 2008 reaching a maximum level of 6.5%. During 2009 the Central Bank started to loosen its monetary
policy stance as a response to the deceleration of private spending and the deterioration of the economy. The Central Bank reduced
the reference interest rate from 6.50% to 1.25% during that year. In May 2010, the Central Bank changed the direction of its monetary
policy to a more restrictive position in line with the rapid growth of domestic demand and the potential for dangerous levels
of inflation. Since then, there have been consecutive increases in the reference interest rate, which was raised most recently
in May 2011 from 4.00% to 4.25%. As of December 2011, the reference interest rate remained at that level.



In
recent years, the Central Bank has on numerous occasions changed the reserve requirement applicable to Peruvian financial
institutions as part of its monetary policy. The regulations that were put in place during 2011 have increased the amount of
reserves required by S/.2,032 million and US$1,795 million in local and foreign currency respectively. This new environment
has led to an increase in the funding cost of the bank. Changes in the reserve requirement regulation may adversely affect
the bank ́s business, financial condition and results of operations. Even though the marginal required rates have been
stable since April 2011, the average rate increased to 14.04% from 13.24% in Nuevos Soles and to 38.7% from 38.0% in foreign
currency. In December 2011, the reserve position of commercial banks was S/.9,402 million and US$8,991 million in local and
foreign currency, respectively.



Lending
Activities



Law
26702 sets the maximum amount of credit that a financial institution may extend to a single borrower. A single borrower includes
an individual or an economic group. An economic group constituting a single or common risk includes a person, such person’s
close relatives and the companies in which such person or close relatives have significant share ownership or decision-making
capability. Significant decision-making capability is deemed to be present when, among other factors, a person or group can exercise
material and continuous influence upon the decisions of a company, when a person or company holds seats on the board of directors
or has principal officers in another company, or when it can be assumed that one company or person is the beneficial recipient
of credit facilities granted to another company.



60







The
limit on credit that may be extended to one borrower vary according to the type of borrower and the collateral received. The limit
applicable to credit for any Peruvian borrower is 10% of the bank’s regulatory capital, applied to both unconsolidated and
consolidated records, which may be increased to up to 30% if the loan is collateralized in a manner acceptable under Law 26702.
If a financial institution exceeds these limits, the SBS may impose a fine on the institution. As of December 31, 2011, the 10.0%
credit limit per borrower of BCP, unconsolidated, was US$267.1 million for unsecured loans, and the 30.0% limit was US$801.3 million
for secured loans.



Pursuant
to Article 52 of the organic law of the Central Bank, in certain circumstances, the Central Bank has the authority to establish
limits on interest rates charged by commercial banks and other financial institutions. No such limits are currently in place;
however, there can be no assurance that the Central Bank will not establish such limits on interest rates in the future.



Related
Party Transactions



Law
26702 regulates transactions with related parties and affiliates of financial institutions. SBS and SMV have also enacted regulations
that define indirect ownership, related parties and economic groups, which serve to limit transactions with related parties and
affiliates. These regulations also provide standards for the supervision of financial and mixed conglomerates formed by financial
institutions.



The
total amount of loans to directors, employees or close relatives of any such persons may not exceed 7% of a bank’s regulatory
capital (i.e., 5% of the overall 7% limit). All loans made to any single director or employee borrower, considering his/her close
relatives may not exceed 0.35% of such a regulatory capital.



Pursuant
to Law 26702, as amended by Law 27102, the aggregate amount of loans to related party borrowers considered to be part of an economic
group (as defined above) may not exceed 30% (previously 75%) of a bank’s regulatory capital. For purposes of this test,
related party borrowers include (i) any person holding, directly or indirectly, 4% or more of a bank’s shares, (ii) directors,
(iii) certain principal executive officers of a bank or (iv) persons affiliated with the administrators of the bank. Loans to
individual related party borrowers are also subject to the limits on lending to a single borrower described under “—Lending
Activities” above. All loans to related parties must be made on terms no more favorable than the best terms that BCP offers
to the public.



Ownership
Restrictions



Law
26702 establishes certain restrictions on the ownership of a bank’s shares. Banks must have at least two shareholders at
all times. Restrictions are placed on the ownership of shares by persons that have committed certain crimes, as well as by public
officials who have supervisory powers over banks or who are majority shareholders of an enterprise of a similar nature. All transfers
of shares in a bank must be reported by the bank to the SBS after the transfer. Transfers involving the acquisition by any individual
or corporation, whether directly or indirectly, of more than 10% of a bank’s capital stock require prior authorization from
the SBS. The SBS may deny authorization to such transfer of shares if the purchasers (or their shareholders in the case of juridical
persons) are legally disabled, have engaged in illegal activity in the area of banking, finance, insurance or reinsurance, or
if objections are raised on the basis of the purchaser’s moral fitness or economic solvency. The decision of the SBS is
final, and cannot be overturned by the courts. If a transfer is made without obtaining the prior approval of the SBS, the purchaser
may be fined an amount equivalent to the value of the securities transferred. In addition, the purchaser is required to sell the
securities within 30 days, or the fine will double, and the purchaser is disqualified from exercising its voting rights at shareholders’
meetings. Foreign investors receive the same treatment as Peruvian nationals and are subject to the limitations described above.



Finally,
under Peruvian law, individuals or corporations that acquire more than 3% of a bank’s shares or 1% in a period of 12 months
are required to provide information to the SBS upon request.



61







Finally,
under Peruvian law, individuals or corporations that acquire, directly or indirectly, 1% of the capital stock of a bank in a period
of 12 months or if with such purchases acquire a 3% or more share participation, have the obligation to provide the information
that the SBS may require in order to identify their main economic activities and assets structure.



Risk
Rating



Law
26702 and SBS Resolutions No. 672 and 18400-2010, require that all financial companies be rated by at least two risk rating companies
on a semi-annual basis, in addition to the SBS’s assessment. Criteria to be considered in the rating include risk management
and control procedures, loan quality, financial strength, profitability, liquidity and financial efficiency. Five risk categories
are assigned, from “A” (lowest risk) to “E” (highest risk), allowing for sub-categories within each category.
As of September 2011, BCP was assigned the “A+” risk category by its two rating agencies, Equilibrium Clasificadora
de Riesgo and Apoyo and Associates International. As of December 2011, BCP maintained the risk category of “A+”.



Deposit
Fund



Law
26702 provides for mandatory deposit insurance to protect the deposits of financial institutions by establishing the Fondo de
Seguro de Depósitos (Deposit Insurance Fund or the Fund) for individuals, associations, not-for-profit companies, and demand
deposits of non-financial companies. Financial institutions must pay an annual premium calculated on the basis of the type of
deposits accepted by the entity and the risk classification of such entity, made by the SBS and at least two independent risk-rating
agencies. The annual premium begins at 0.65% of total funds on deposit under the coverage of the Fund and increases to 1.45% applicable
to banks in the highest risk category. BCP is currently classified in the lowest risk category. The maximum amount (defined on
a monthly basis) that a customer is entitled to recover from the Fund is S/. 91,621 as of December 31, 2011.



Intervention
by the SBS



Pursuant
to Law 26702, as amended by Law 27102, the SBS has the authority to seize the operations and assets of a bank. These laws provide
for three levels of action by the SBS: a supervisory regime, an intervention regime and the liquidation of the bank. Any of these
actions may be taken if certain events occur, including if the bank: (i) interrupts payments on its liabilities, (ii) repeatedly
fails to comply with the regulations of the SBS or the Central Bank, (iii) repeatedly violates the law or the provisions of the
bank’s bye-laws, (iv) repeatedly manages its operations in an unauthorized or unsound manner or (v) has its regulatory capital
fall or be reduced by more than 50%.



During
the intervention regime, rather than seizing the operations and assets of a bank, the SBS may adopt other measures, including
(i) placing additional requirements on the bank, (ii) ordering it to increase its capital stock or divest certain or all of its
assets, or (iii) imposing a special supervision regime during which BCP must adhere to a financial restructuring plan.



The
SBS intervention regime stops a bank’s operations and may last for a maximum of 45 days, which may be extended for an additional
45 days. During this time, the SBS may institute measures such as: (i) canceling losses by reducing reserves, capital and subordinated
debt, (ii) segregating certain assets and liabilities for transfer to another financial institution and (iii) merging the intervened
bank with an acquiring institution according to the program established by Urgent Decree No. 108-2000, enacted in November 2000.
After the intervention, the SBS will liquidate the bank unless it is merged with an acquiring institution, as described in (iii)
above.



62







Regulation
from the United States Federal Reserve Bank and from the State of Florida Department of Banking and Finance



Banco
de Credito del Peru, Miami Agency (“BCP Miami Agency”) is licensed to operate as an International Agency in the State
of Florida and was authorized to transact business by the Comptroller of Florida on September 3, 2002. The Office of Financial
Regulation of the State of Florida shares regulatory responsibility with the Federal Reserve Bank of Atlanta.



Regulation
from the Superintendency of Banks in Panama



BCP
Panama is a branch of BCP that is registered in the Republic of Panama. It began operating in June 2002 under an International
License issued by the Panamanian Superintendence of Banks, in accordance with Law Decree No. 9 of February 26, 1998, as amended.
BCP Panama is subject to an inspection every two (2) years made by auditors and inspectors of the Panamanian Superintendence of
Banks, to determine, among other things, its compliance with the Decree Law No. 2 and No. 42 Law on the Prevention of Money Laundering.



| | (iii) | ASB
| | ----- | ---



General



Atlantic
Security Bank (ASB), a subsidiary of ASHC, is a Cayman Islands bank with a branch in Panama. ASB is regulated by the regulatory
authorities of the Cayman Islands while its Panama branch is regulated by the banking authorities of Panama. The supervision of
ASB by Cayman Islands and Panamanian regulatory authorities is less extensive than the supervision and regulation of U.S. banks
by U.S. banking authorities. In particular, ASB does not have a lender of last resort and its deposits are not guaranteed by any
government agency.



ASB
is registered as an exempt company and is licensed in the Cayman Islands pursuant to the Banks and Trust Companies Law. ASB holds
an unrestricted Category B Banking and Trust License, as well as a Mutual Fund Administrator License. As a holder of a Category
B License, ASB may not take deposits from any person residing in the Cayman Islands other than another licensee, an exempt company
or an ordinary non-resident company which is not carrying on business in the Cayman Islands.



ASB
may not invest in any asset which represents a claim on any person residing in the Cayman Islands, except a claim resulting from:
(i) a loan to an exempt or an ordinary non-resident company not carrying on business in the Cayman Islands; (ii) a loan by way
of mortgage to a member of its staff or to a person possessing or being deemed to possess Caymanian status under the immigration
law, for the purchase or construction of a residence in the Cayman Islands to be owner-occupied; (iii) a transaction with another
licensee or (iv) the purchase of bonds or other securities issued by the government of the Cayman Islands, a body incorporated
by statute, or a company in which the government is the sole or majority beneficial owner. In addition, ASB may not, without the
written approval of the Cayman Islands Monetary Authority (the “Authority”), carry on any business in the Cayman Islands
other than permitted by the Category B License.



There
are no ratio or liquidity requirements under the Cayman Banking Law, but the Authority expects observance of prudent banking practices.
As a matter of general practice, the ratio of liabilities to capital and surplus should not exceed 40-to-1 and the ratio of risk-weighted
assets to capital and surplus should not exceed 8.33-to-1 (approximately 12%). There is a statutory minimum net worth requirement
of US$480,000, but the Authority generally requires a bank or trust company to maintain a higher paid-in capital appropriate to
its business. The Authority requires compliance with the guidelines promulgated by the Basel Accord on Banking Regulations and
Supervisory Practices although, in special circumstances, different gearing and/or capital risk asset ratios may be negotiated.
Compliance with the Cayman Banking Law is monitored by the Authority.



63







Continuing
Requirements



Under
the law of the Cayman Islands, ASB is subject to the following continuing requirements: (i) to remain in good standing under the
Cayman Islands Companies Law, including the filing of annual and other returns and the payment of annual fees; (ii) to file with
the Registrar of Companies any change in the information or documents required to be provided and to pay annual fees; (iii) to
file certain prescribed forms with the Authority on a quarterly basis; (iv) to file with the Authority audited accounts within
three months of each financial year (in the case of a locally incorporated bank which is not part of a substantial international
banking group, a senior officer or board member discusses these accounts each year at a meeting with the Authority) and (v) to
file an annual questionnaire.



ASB
is required by the Cayman Banking Law to have at least two directors. Additionally, ASB must receive prior approval from the Authority
(i) for any proposed change in the directors or senior officers, though in exceptional cases a waiver can be obtained enabling
changes to be reported after the event or annually in the case of a branch of a substantial international bank; (ii) for the issue,
transfer or other disposal of shares (it is rare for a waiver to be granted with respect to shares except in the case of a branch
of a substantial international bank and where the shares are widely held and publicly traded); (iii) for any significant change
in the business plan filed on the original license application or (iv) to open a subsidiary, branch, agency or representative
office outside the Cayman Islands. Finally, ASB must obtain the prior approval of the Authority to change its name and must notify
the Authority of any change in the principal office and authorized agent in the Cayman Islands.



| | (iv) | BCP
                                                                       Bolivia
| | ---- | ----------------------------------------------------------------------------------



Until
March 2010, the Bolivian banking system operated under the Ley de Bancos y Entidades Financieras (the Law of Banks and Financial
Entities) No. 1488, enacted on April 14, 1993, which was modified by Law 3076 of June 20, 2005, which granted supervisory powers
to the Superintendency of Banks and Financial Entities (now referred to as the Financial System Supervisory Authority (Autoridad
de Supervisión del Sistema Financiero), pursuant to Supreme Decree 29894). In addition, the law established that Banco
Central de Bolivia (the Central Bank of Bolivia) would regulate financial intermediation and deposit activities, determine monetary
and foreign exchange policy, and establish reserve requirements on deposits and capital adequacy, which banks and financial companies
were required to follow. Also, the Autoridad de Supervisión del Sistema Financiero (the Financial System Supervisory Authority)
supervised brokerage activities and mutual fund management that was conducted through BCP Bolivia’s subsidiaries Credibolsa
S.A. and Credifondo S.A. These subsidiaries operated under the Ley del Mercado de Valores (the Securities Markets Law) No. 1834,
enacted on March 31, 1998.



The
new constitution of Bolivia, which was approved by referendum in February 2009, established that the Bolivian financial system
is to be regulated as follows:



| | • | The
                                                                  Central Bank of Bolivia is responsible for maintaining the stability
                                                                  of the internal monetary value and has authority to regulate
                                                                  monetary policy, control foreign exchange policies, regulate
                                                                  the payment system, authorize the issuance of money and administrate
                                                                  international reserves in coordination with the Economic Policy
                                                                  stated by the Public Sector.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | All
                                                                  financial entities (banks, mutual funds, securities, insurance
                                                                  and others) are regulated by the Financial System Supervisory
                                                                  Authority (or FSSA). The FSSA (or ASFI in Spanish) has assumed
                                                                  all regulatory functions held previously be the Superintendency
                                                                  of Banks and Financial Entities and the Superintendency of Pensions,
                                                                  Securities and Insurance.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The
changes to existing laws by the new Bolivian constitution have not materially impacted BCP Bolivia’s business.



The
Bolivian government announced that through the first quarter of 2012 they intend to adopt a new law that involves the application
of a new tax burden to the banks and non-bank financial institutions regulated by ASFI. Every institution whose profits exceed
the 13% of coefficient of equity returns will be taxed with an additional aliquot of 12.5%. The government also intends enact
a related decree, simultaneously with the new law, which will raise the capital adequacy ratio over 10% to strengthen the equity
of financial institutions operating in Bolivia. A draft of the new law has not yet been published.



64







| | (v) | Grupo
                                                                      Pacífico
| | --- | ------------------------------------------------------------------------------------



Overview



Grupo
Pacífico’s operations are regulated by Law 26702 and the SBS. Peruvian insurance companies must submit regular reports
to the SBS concerning their operations. In addition, the SBS conducts on-sight reviews on an annual basis. The SBS conducts these
reviews primarily to evaluate a company’s compliance with solvency margin and reserve requirements, investment requirements
and rules governing the recognition of premium income. If the SBS determines that a company is unable to meet the solvency margin
or technical reserve requirements, or is unable to pay claims as they come due, it may either liquidate the company or permit
it to merge with another insurance company.



Under
Peruvian law, insurance companies may engage in certain credit risk operations, such as guarantees, bonds and trusteeships, but
are prohibited from offering other banking services, operating mutual funds or offering portfolio management services. In addition,
insurance companies may not conduct brokerage operations for third parties.



Peruvian
insurance companies are also prohibited from having an ownership interest in other insurance or reinsurance companies of the same
class or in private pension funds.



Establishment
of an Insurance Company



Insurance
companies must be authorized by the SBS to commence operations. Peruvian law establishes certain minimum capital requirements
for insurance and reinsurance companies, which must be satisfied by cash investments in the company. The statutory amounts are
expressed in constant value.



Solvency
Requirements



Pursuant
to Law 26702, the SBS regulates the solvency margin of Peruvian insurance companies. The solvency margin calculations take into
account the amount of premiums written and losses incurred during a specified period prior to the date of the calculation.



Insurance
companies must also maintain solvency equity, which must be the greater of (i) the solvency margin and (ii) the minimum capital
requirement, as established by law. The required amount of solvency equity is recalculated at least quarterly. If an insurance
company has outstanding credit risk operations, part of the solvency equity must be set aside for its coverage.



Legal
Reserve Requirements



Peruvian
law also requires that all insurance companies establish a legal guarantee reserve for policyholders by setting aside 10% of income
before taxes until the reserve reaches at least 35% of paid-in capital.



65







Reserve
Requirements



Pursuant
to Law 26702 and regulations issued by the SBS, Peruvian insurance companies must establish technical reserves. See “—(6)
Pacífico Peruano Suiza—(ii) Claims and Reserves.” Law 26702 also requires insurance companies to create a reserve
for IBNR claims, which are reflected as a liability, net of recoveries and reinsurance, in the Consolidated Financial Statements.
Reserves for IBNR claims are estimated by using generally accepted actuarial reserving methods. See Note 3(e) to the Consolidated
Financial Statements. Finally, Grupo Pacífico is required by the SBS to establish pre-event reserves for risk of catastrophes,
which, in accordance with IFRS principles, are not considered in our financial statements. See “—(6) Pacífico
Peruano Suiza—(ii) Claims and Reserves.”



Investment
Requirements



Pursuant
to Law 26702, the total amount of an insurance company’s solvency equity and technical reserves must be permanently supported
by diversified assets, which may not be pledged or otherwise encumbered. The investment regulations further state that deposits
in and bonds of one financial institution together cannot exceed 10% of the total of an insurer’s solvency equity and technical
reserves combined. In general, no more than 20% of an insurance company’s combined solvency equity and technical reserves
may be invested in instruments (including stocks and bonds) issued by a company or group of companies. In order for an insurance
company to invest in non-Peruvian securities, the securities must be rated by an internationally recognized credit rating company
and the asset class must be authorized by Peruvian SBS regulations. Securities owned by insurance companies must be registered
in the Public Registry of Securities of Peru or the comparable registry of their respective country.



Related
Party Transactions



Law
26702 generally provides that insurance companies may not extend credit to or guarantee the obligations of employees or members
of the board of directors, except for certain home mortgage loans to employees.



Ownership
Restrictions



Law
26702 sets forth the same types of restrictions regarding the ownership and transfer of insurance company shares as it does regarding
the ownership and transfer of shares in banks. See “—(11) Supervision and Regulation—(ii) BCP—Overview”.



| | (vi) | Prima
                                                                       AFP
| | ---- | --------------------------------------------------------------------------------



Prima
AFP’s operations are regulated in Peru by the Consolidated Sole Text of the Private System for the Administration of Funds
Act, approved by Supreme Decree No. 054-97-EF. Operations are controlled and supervised by the SBS. In addition, AFPs are under
the supervision of the SMV (Superintendencia del Mercado de Valores). AFPs must submit reports to the SBS, members and beneficiaries
in general, with regard to the administration of pension funds and any information linked to the AFP’s operations.



Under
Peruvian legislation, AFPs can only have one type of business activity, that is, they can only offer services linked to the administration
of pension funds under the category of Individual Capital Accounts. Also, AFPs must pay benefits provided by Law and administer
retirement, disability, death benefit and funeral expense risks. AFPs must submit audited financial information, in accordance
with SBS regulations. There are certain limitations on the ownership and transfer of AFP shares



66







SBS
authorization is required for an AFP to begin operations. Peruvian law establishes a minimum capital requirement, paid in cash
by the shareholders.



SBS
has put in place many investment limits. These limits restrain the amounts AFPs are allowed to invest considering asset class,
economic group, issuer, among others. In addition, some of these limits vary regarding the risk profile of the fund. Among these
limits, the most general investment limits are as follows:



| | · | The
                                                                                                               total amount invested
                                                                                                               in instruments
                                                                                                               issued or guaranteed
                                                                                                               by the Peruvian
                                                                                                               State cannot exceed
                                                                                                               30% of the fund
                                                                                                               value;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | The
                                                                                                               total amount invested
                                                                                                               in instruments
                                                                                                               issued or guaranteed
                                                                                                               by BCRP cannot
                                                                                                               exceed 30% of the
                                                                                                               fund value;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | The
                                                                                                               total amount jointly
                                                                                                               invested under
                                                                                                               the two aforementioned
                                                                                                               points cannot exceed
                                                                                                               40% of the fund
                                                                                                               value and;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | The
                                                                                                               total amount invested
                                                                                                               in instruments
                                                                                                               issued by the government,
                                                                                                               financial institutions,
                                                                                                               and non-financial
                                                                                                               institutions whose
                                                                                                               commercial activities
                                                                                                               are mostly abroad,
                                                                                                               cannot exceed 50%
                                                                                                               of the fund value.
                                                                                                               The Central Bank
                                                                                                               has set a maximum
                                                                                                               operating sub-limit
                                                                                                               at 30%.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



As
mentioned before, the Central Bank can set maximum operating percentages and/or sub-limits to the aforementioned investment limits.



SBS
requires a guaranteed minimum profitability for funds under management. Part of the guarantee is the Encaje Legal, an obligatory
reserve, which must be funded by the AFP. The amount will depend on the instruments in the portfolio, but is, on average, 1% of
funds under management. In addition, Peruvian law establishes that companies must set up a legal reserve equivalent to 10% of
net income, until the reserve is at least 20% of the capital.



| | (12) | Selected
                                                                       Statistical Information
| | ---- | -------------------------------------------------------------------------------------------------------



In
the following tables, we have set forth certain selected statistical information and ratios regarding our business for the periods
indicated. You should read the selected statistical information in conjunction with the information included in “Item 5.
Operating and Financial Review and Prospects—(A) Operating Results” and the Consolidated Financial Statements (and
the notes that accompany the financial statements). The statistical information and discussion and analysis given below for the
years 2007, 2008, 2009, 2010 and 2011 reflect our consolidated financial position as well as that of our subsidiaries, as of December
31, 2007, 2008, 2009, 2010 and 2011 and our results of operations for 2007, 2008, 2009, 2010 and 2011.



| | (i) | Average
                                                                      Balance Sheets and Income from Interest-Earning Assets
| | --- | ------------------------------------------------------------------------------------------------------------------------------------



The
tables below set forth selected statistical information based on our average balance sheets prepared on a consolidated basis.
Except as otherwise indicated, we have classified average balances by currency (Nuevos Soles or foreign currency (primarily U.S.
Dollars)) rather than by the domestic or international nature of the balance. In addition, except where noted, the average balances
are based on the quarterly ending balances in each year. Any of these quarter-end balances that were denominated in Nuevos Soles
have been converted into U.S. Dollars using the applicable SBS exchange rate as of the date of such balance. Our management does
not believe that the stated averages present trends materially differ from those that would be presented by daily averages.



67







Average
Balance Sheets

Assets,
Interest Earned and Average Interest Rates



|                                                                                                      |  | Year ended December 31,                         |           
|----------------------------------------------------------------------------------------------------- |  | ----------------------------------------------- | ----------
|                                                                                                      |  | 2009                                            |           
|ASSETS:                                                                                               |  | Average
    Balance                             |           
|                                                                                                      |  | (U.S. Dollars in thousands, except percentages) |           
|Interest-earning assets:                                                                              |  |                                                 |           
|Deposits in Central
    Bank                                                                          |  |                                                 |           
|Nuevos Soles                                                                                          |  | US$                                             | 64,870    
|Foreign Currency                                                                                      |  |                                                 | 2,099,395 
|Total                                                                                                 |  |                                                 | 2,164,265 
|Deposits in other banks                                                                               |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 111,006   
|Foreign Currency                                                                                      |  |                                                 | 920,030   
|Total                                                                                                 |  |                                                 | 1,031,036 
|Investment securities                                                                                 |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 1,536,677 
|Foreign Currency                                                                                      |  |                                                 | 3,288,724 
|Total                                                                                                 |  |                                                 | 4,825,401 
|Total loans (1)                                                                                       |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 3,893,475 
|Foreign Currency                                                                                      |  |                                                 | 6,810,072 
|Total                                                                                                 |  |                                                 | 10,703,547
|Total dividend-earning
    assets                                                                     |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 160,185   
|Foreign Currency                                                                                      |  |                                                 | 114,074   
|Total                                                                                                 |  |                                                 | 274,259   
|Total interest-earning
    assets                                                                     |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 5,766,213 
|Foreign Currency                                                                                      |  |                                                 | 13,232,295
|Total                                                                                                 |  |                                                 | 18,998,508
|Noninterest-earning
    assets:                                                                       |  |                                                 |           
|Cash and due from banks                                                                               |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 327,127   
|Foreign Currency                                                                                      |  |                                                 | 275,276   
|Total                                                                                                 |  |                                                 | 602,403   
|Reserves for loan losses                                                                              |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | (133,303  
|Foreign Currency                                                                                      |  |                                                 | (156,364  
|Total                                                                                                 |  |                                                 | (289,667  
|Premises and equipment                                                                                |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 303,170   
|Foreign Currency                                                                                      |  |                                                 | 19,242    
|Total                                                                                                 |  |                                                 | 322,412   
|Other non-interest-earning assets and gain
    from derivatives instruments and other interest income |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 820,740   
|Foreign Currency                                                                                      |  |                                                 | 814,175   
|Total                                                                                                 |  |                                                 | 1,634,915 
|Total non-interest-earning
    assets                                                                 |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 1,317,734 
|Foreign Currency                                                                                      |  |                                                 | 952,329   
|Total                                                                                                 |  |                                                 | 2,270,063 
|Total average assets                                                                                  |  |                                                 |           
|Nuevos Soles                                                                                          |  |                                                 | 7,083,947 
|Foreign Currency                                                                                      |  |                                                 | 14,184,624
|Total                                                                                                 |  |                                                 | 21,268,571



| | (1) | Figures
                                                           for total loans include past-due loans, but do not include accrued
                                                           but unpaid interest on such past-due loans in the year in which such
                                                           loans became past due. Accrued interest is included.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



68







Average
Balance Sheets

Liabilities,
Interest Paid and Average Interest Rates



|                                                                                        |  | Year ended December 31,                             |           
|--------------------------------------------------------------------------------------- |  | --------------------------------------------------- | ----------
|                                                                                        |  | 2009                                                |           
|LIABILITIES                                                                             |  | Average
    Balance                                 |           
|                                                                                        |  | (U.S.
    Dollars in thousands, except percentages) |           
|Interest-bearing liabilities:                                                           |  |                                                     |           
|Demand  deposits                                                                        |  |                                                     |           
|Nuevos Soles
    (1)                                                                    |  | US$                                                 | 1,723,108 
|Foreign Currency (1)                                                                    |  |                                                     | 2,685,555 
|Total                                                                                   |  |                                                     | 4,408,663 
|Savings deposits                                                                        |  |                                                     |           
|Nuevos Soles (1)                                                                        |  |                                                     | 1,283,529 
|Foreign Currency (1)                                                                    |  |                                                     | 1,952,183 
|Total                                                                                   |  |                                                     | 3,235,712 
|Time deposits                                                                           |  |                                                     |           
|Nuevos Soles (1)                                                                        |  |                                                     | 1,988,784 
|Foreign Currency (1)                                                                    |  |                                                     | 4,191,628 
|Total                                                                                   |  |                                                     | 6,180,412 
|Due to banks and correspondents                                                         |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     | 201,718   
|Foreign Currency                                                                        |  |                                                     | 849,004   
|Total                                                                                   |  |                                                     | 1,050,722 
|Bonds                                                                                   |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     | 528,565   
|Foreign Currency                                                                        |  |                                                     | 1,572,566 
|Total                                                                                   |  |                                                     | 2,101,131 
|Total interest-bearing liabilities                                                      |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     | 5,725,704 
|Foreign Currency                                                                        |  |                                                     | 11,250,936
|Total                                                                                   |  |                                                     | 16,976,640
|Non-interest-bearing
    liabilities and net equity:                                    |  |                                                     |           
|Other liabilities and loss from derivatives
    instruments and other interest expenses |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     | 676,295   
|Foreign Currency                                                                        |  |                                                     | 1,489,528 
|Total                                                                                   |  |                                                     | 2,165,823 
|Equity attributable to Credicorp equity
    holders                                     |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     |           
|Foreign Currency                                                                        |  |                                                     | 1,980,856 
|Total                                                                                   |  |                                                     | 1,980,856 
|Minority Interest                                                                       |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     |           
|Foreign Currency                                                                        |  |                                                     | 145,252   
|Total                                                                                   |  |                                                     | 145,252   
|Total non-interest-bearing liabilities
    and equity                                   |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     | 676,295   
|Foreign Currency                                                                        |  |                                                     | 3,615,636 
|Total                                                                                   |  |                                                     | 4,291,931 
|Total average liabilities and equity                                                    |  |                                                     |           
|Nuevos Soles                                                                            |  |                                                     | 6,401,999 
|Foreign Currency                                                                        |  |                                                     | 14,866,572
|Total                                                                                   |  |                                                     | 21,268,571



| | (1) | Includes
                                                           the amount paid - for the deposit insurance fund.
| | --- | ---------------------------------------------------------------------------------------------------------------------



69







Changes
in Net Interest Income and Expense: Volume and Rate Analysis



|                                                     |  | 2010/2009                              |         |   | 2011/2010                              | 
|---------------------------------------------------- |  | -------------------------------------- | ------- | - | -------------------------------------- | 
|                                                     |  | Increase/(Decrease) due to changes in: |         |   | Increase/(Decrease) due to changes in: | 
|                                                     |  | Volume                                 |         |   | Rate                                   | 
|                                                     |  | (U.S. Dollars in thousands)            |        
|Interest Income:                                     |  |                                        |         |   |                                        | 
|Interest-earning deposits in Central
    Bank        |  |                                        |         |   |                                        | 
|Nuevos
    Soles                                     |  |                                        | 21,781  |   |                                        | 
|Foreign Currency                                     |  |                                        | 79      |   |                                        | 
|Total                                                |  |                                        | 21,860  |   |                                        | 
|Deposits in other banks                              |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | (2,917  | ) |                                        | 
|Foreign Currency                                     |  |                                        | (372    | ) |                                        | 
|Total                                                |  |                                        | (3,289  | ) |                                        | 
|Investment securities                                |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 17,122  |   |                                        | 
|Foreign Currency                                     |  |                                        | 1,164   |   |                                        | 
|Total                                                |  |                                        | 18,286  |   |                                        | 
|Total loans(1)                                       |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 146,875 |   |                                        | 
|Foreign Currency                                     |  |                                        | 89,175  |   |                                        | 
|Total                                                |  |                                        | 236,050 |   |                                        | 
|Total dividend-earning assets                        |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 874     |   |                                        | 
|Foreign Currency                                     |  |                                        | 6,310   |   |                                        | 
|Total                                                |  |                                        | 7,184   |   |                                        | 
|Total interest-earning assets                        |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 279,347 |   |                                        | 
|Foreign Currency                                     |  |                                        | 65,696  |   |                                        | 
|Total                                                |  |                                        | 345,043 |   |                                        | 
|Interest Expense:                                    |  |                                        |         |   |                                        | 
|Demand deposits                                      |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 4,715   |   |                                        | 
|Foreign Currency                                     |  |                                        | 747     |   |                                        | 
|Total                                                |  |                                        | 5,462   |   |                                        | 
|Savings deposits                                     |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 2,927   |   |                                        | 
|Foreign Currency                                     |  |                                        | 770     |   |                                        | 
|Total                                                |  |                                        | 3,697   |   |                                        | 
|Time deposits                                        |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 39,147  |   |                                        | 
|Foreign Currency                                     |  |                                        | (6,037  | ) |                                        | 
|Total                                                |  |                                        | 33,110  |   |                                        | 
|Due to banks and correspondents and
    issued bonds |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | (9      | ) |                                        | 
|Foreign Currency                                     |  |                                        | 20,743  |   |                                        | 
|Total                                                |  |                                        | 20,734  |   |                                        | 
|Bonds                                                |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 2,171   |   |                                        | 
|Foreign Currency                                     |  |                                        | 15,111  |   |                                        | 
|Total                                                |  |                                        | 17,282  |   |                                        | 
|Total interest-bearing liabilities                   |  |                                        |         |   |                                        | 
|Nuevos Soles                                         |  |                                        | 49,845  |   |                                        | 
|Foreign Currency                                     |  |                                        | 28,196  |   |                                        | 
|Total                                                |  |                                        | 78,041  |   |                                        | 



| | (1) | Figures
                                                           for total loans include past-due loans, but do not include accrued
                                                           but unpaid interest on such past-due loans in the year in which such
                                                           loans became past due. Accrued interest is included.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Interest-Earning
Assets, Net Interest Margin and Yield Spread



The
following table shows for each of the periods indicated, by currency, the levels of average interest-earning assets, net interest
income, gross yield, net interest margin and yield spread, all on a nominal basis:



|                                |  | Year ended December 31,                         |           
|------------------------------- |  | ----------------------------------------------- | ----------
|                                |  | 2009                                            |           
|                                |  | (U.S. Dollars in thousands, except percentages) |           
|Average interest-earning assets |  |                                                 |           
|Nuevos
    Soles                |  |                                                 | 5,766,213 
|Foreign Currency                |  |                                                 | 13,232,295
|Total                           |  |                                                 | 18,998,508
|Net interest income             |  |                                                 |           
|Nuevos Soles                    |  |                                                 | 434,601   
|Foreign Currency                |  |                                                 | 475,019   
|Total                           |  |                                                 | 909,620   
|Gross yield (1)                 |  |                                                 |           
|Nuevos Soles                    |  |                                                 | 10.14     
|Foreign Currency                |  |                                                 | 5.21      
|Weighted-average rate           |  |                                                 | 6.71      
|Net interest margin (2)         |  |                                                 |           
|Nuevos Soles                    |  |                                                 | 7.54      
|Foreign Currency                |  |                                                 | 3.59      
|Weighted-average rate           |  |                                                 | 4.79      
|Yield spread (3)                |  |                                                 |           
|Nuevos Soles                    |  |                                                 | 7.52      
|Foreign Currency                |  |                                                 | 3.30      
|Weighted-average rate           |  |                                                 | 4.56      

(1)    Gross
yield is interest income divided by average interest-earning assets.

(2)    Net
interest margin represents net interest income divided by average interest-earning assets.

(3)    Yield
spread, on a nominal basis, represents the difference between gross yield on average interest-earning assets and average cost
of interest-bearing liabilities.



70







Interest-Earning
Deposits With Other Banks



The
following table shows the short-term funds deposited with other banks. These deposits are denominated by currency as of the dates
indicated. Deposits held in countries other than Peru are denominated in several currencies; however, the majority of these deposits
are denominated in U.S. Dollars. These currencies were converted to U.S. Dollars using the applicable SBS exchange rate as of
the dates indicated.



|                                         |  | Year ended December 31,     |          
|---------------------------------------- |  | --------------------------- | ---------
|                                         |  | 2009                        |          
|                                         |  | (U.S. Dollars in thousands) |          
|                                         |  |                             |          
|Nuevo Sol-denominated:                   |  |                             |          
|Peruvian Central
    Bank                |  | US$                         | 56,753   
|Commercial
    banks                     |  |                             | 43,982   
|Total Nuevo Sol-denominated              |  | US$                         | 100,735  
|Foreign Currency-denominated:            |  |                             |          
|Peruvian Central
    Bank (U.S. Dollars) |  | US$                         | 2,033,290
|U.S. Dollars, other                      |  |                             | 763,631  
|Other                                    |  |                             | 516      
|Total
    Foreign Currency-denominated   |  | US$                         | 2,797,437
|Total                                    |  | US$                         | 2,898,172



| | (ii) | Investment
                                                                       Portfolio
| | ---- | -------------------------------------------------------------------------------------------



The
following table shows the fair value of our trading and available-for-sale investment securities without interest designated by
type of security at the dates indicated (see Note 5 to the Consolidated Financial Statements):



|                                        |  | On December 31,             |          
|--------------------------------------- |  | --------------------------- | ---------
|                                        |  | 2009                        |          
|                                        |  | (U.S. Dollars in thousands) |          
|                                        |  |                             |          
|Nuevo Sol-denominated:                  |  |                             |          
|Peruvian government
    bonds           |  | US$                         | 170,811  
|Equity
    securities                   |  |                             | 199,410  
|Bonds                                   |  |                             | 150,917  
|Peruvian Central
    Bank certif. notes |  |                             | 1,548,715
|Other investments                       |  |                             | 149,591  
|Total Nuevo Sol-denominated             |  |                             | 2,219,444
|Foreign Currency-denominated:           |  |                             |          
|Equity securities                       |  | US$                         | 131,327  
|Bonds                                   |  |                             | 1,634,708
|Peruvian Government
    Bonds           |  |                             | 669,056  
|Peruvian Central
    Bank certif. notes |  |                             | -        
|Other investment                        |  |                             | 443,493  
|Total
    Foreign Currency-denominated  |  | US$                         | 2,878,584
|Total
    securities holdings:          |  | US$                         | 5,098,028

The
allowance for decline in value of marketable securities is debited from the value of each individual security.



71







The
weighted-average yield on our Nuevo Sol-denominated interest-earning investment securities was 2.5% in 2009, 2.9% in 2010 and
4.9% in 2011. The weighted-average yield on our foreign currency-denominated portfolio was 4.5% in 2009, 4.0% in 2010 and 3.5%
in 2011. The total weighted-average yield of our investment securities was 3.9% in 2009, 3.6% in 2010 and 4.2% in 2011.



The
weighted-average yield on our Nuevo Sol-denominated dividend-earning assets was 1.28% in 2009, 3.0% in 2010 and 3.3% in 2011.
The weighted-average yield on our foreign currency-denominated portfolio was 6.7% in 2009, 2.3% in 2010 and 2.7% in 2011. The
total weighted-average yield of our dividend-earning assets was 3.5% in 2009, 2.7% in 2010 and 3.0% in 2011.



The
following table shows the maturities of our trading and available-for-sale investment securities designated by type of security
on December 31, 2011:



|                                       |  | Within
    1 year           |           |  | After
    1 year but within 3 years |     |         | Maturing
    After 3 years but within 5 years |  |     | Maturing
    After 5 years but within 10 years |  |  | After 10
    years |         |  | Total |    
|-------------------------------------- |  | --------------------------- | --------- |  | ----------------------------------- | --- | ------- | --------------------------------------------- |  | --- | ---------------------------------------------- |  |  | ------------------ | ------- |  | ----- | ---
|                                       |  | (U.S. Dollars in thousands) |          
|Nuevo Sol-denominated:                 |  |                             |           |  |                                     |     |         |                                               |  |     |                                                |  |  |                    |         |  |       |    
|Peruvian government bonds              |  | US$                         | 50,755    |  |                                     | US$ | 64,375  |                                               |  | US$ | 5,319                                          |  |  | US$                | 118,745 |  |       | US$
|Equity securities (1)                  |  |                             | 251,032   |  |                                     |     | -       |                                               |  |     | -                                              |  |  |                    | -       |  |       |    
|Bonds and debentures                   |  |                             | 12,836    |  |                                     |     | 34,685  |                                               |  |     | 30,756                                         |  |  |                    | 72,980  |  |       |    
|Peruvian Central Bank certif. notes    |  |                             | 2,059,780 |  |                                     |     | -       |                                               |  |     | -                                              |  |  |                    | -       |  |       |    
|Other investments                      |  |                             | 112,856   |  |                                     |     | 11,382  |                                               |  |     | 3,091                                          |  |  |                    | 3,959   |  |       |    
|Total
    Nuevo Sol-denominated        |  | US$                         | 2,487,259 |  |                                     | US$ | 110,442 |                                               |  | US$ | 39,166                                         |  |  | US$                | 195,684 |  |       | US$
|Foreign Currency-denominated:          |  |                             |           |  |                                     |     |         |                                               |  |     |                                                |  |  |                    |         |  |       |    
|Peruvian government bonds              |  |                             | 33,522    |  |                                     |     | -       |                                               |  |     | 37,940                                         |  |  |                    | 632     |  |       |    
|Equity securities (1)                  |  |                             | 228,527   |  |                                     |     | -       |                                               |  |     | -                                              |  |  |                    | -       |  |       |    
|Bonds                                  |  |                             | 224,367   |  |                                     |     | 398,366 |                                               |  |     | 342,637                                        |  |  |                    | 367,222 |  |       |    
|Peruvian Central Bank certif. notes    |  |                             | -         |  |                                     |     | -       |                                               |  |     | -                                              |  |  |                    | -       |  |       |    
|Other investments                      |  |                             | 264,294   |  |                                     |     | 47,735  |                                               |  |     | 17,132                                         |  |  |                    | 18,747  |  |       |    
|Total
    Foreign Currency-denominated |  | US$                         | 750,710   |  |                                     | US$ | 446,101 |                                               |  | US$ | 397,709                                        |  |  | US$                | 386,601 |  |       | US$
|Total
    securities holdings:         |  | US$                         | 3,237,969 |  |                                     | US$ | 556,543 |                                               |  | US$ | 436,875                                        |  |  | US$                | 582,285 |  |       | US$
|Weighted-average
    yield             |  |                             |           |  |                                     |     |         |                                               |  |     |                                                |  |  |                    |         |  |       |    



| | (1) | Equity
                                                                 securities in our account are categorized as maturing within
                                                                 one year.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The
maturities of our investment securities classified by trading and available-for-sale, as of December 31, 2011, are described in
“Item 11. Quantitative and Qualitative Disclosures about Market Risk.”



Pursuant
to the criteria described below, our management has determined that the unrealized losses as of December 31, 2011 and 2010 were
temporary and intends to hold each investment for a sufficient period of time to allow for a potential recovery in fair value.
This holding period will last until the earlier of the investment’s recovery or maturity.



For
equity investments (shares), management considers the following criteria to determine whether a loss is temporary:



| | • | The
                                                                  length of time and the extent to which fair value has been below
                                                                  cost;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | The
                                                                  severity of the impairment;
| | - | -------------------------------------------------------------------------------------------------



| | • | The
                                                                  cause of the impairment and the financial condition and near-term
                                                                  prospects of the issuer; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Activity
                                                                  in the market of the issuer which may indicate adverse credit
                                                                  conditions.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



For
debt investments (fixed maturity), management considers the following criteria to determine whether a loss is temporary:



72









| | • | Management
                                                                  assesses the probability that the company will receive all amounts
                                                                  due (principal and interest) under the contract of the security.
                                                                  It considers a number of factors in identifying a credit-impaired
                                                                  security, including: (i) the nature of the security and the
                                                                  underlying collateral, (ii) the amount of subordination or credit
                                                                  enhancement supporting the security, (iii) the published credit
                                                                  rating and (iv) other analyses of the probable cash flows from
                                                                  the security. If recovery of all amounts due is not likely,
                                                                  management may determine that credit impairment exists and record
                                                                  unrealized losses in our consolidated income statement. The
                                                                  unrealized loss recorded in income represents the security’s
                                                                  decline in fair value, which includes the decline due to forecasted
                                                                  cash flow shortfalls as well as widening market spread.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | For
                                                                  securities with unrealized losses not identified as a credit
                                                                  impairment, management determines whether it is desirable to
                                                                  hold the security for a period of time to allow for a potential
                                                                  recovery in the security’s amortized cost. Management
                                                                  estimates a security’s forecasted recovery period using
                                                                  current estimates of volatility in market interest rates (including
                                                                  liquidity and risk premiums). Management considers a number
                                                                  of factors to determine whether to hold an investment, including
                                                                  (i) a quantitative estimate of the expected recovery period
                                                                  (which may extend to maturity), (ii) the severity of the impairment
                                                                  and (iii) its strategy with respect to the security or portfolio.
                                                                  If management determines it is not desirable to hold the security
                                                                  for a sufficient period of time to allow for a potential recovery
                                                                  in the security’s amortized cost, we record the unrealized
                                                                  loss in our consolidated income statement.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | Loan
                                                                        Portfolio
| | ----- | --------------------------------------------------------------------------------------



Loans
by Type of Loan



The
following table shows our loans by type of loan, at the dates indicated:



|                                 |  | On December 31,             |          
|-------------------------------- |  | --------------------------- | ---------
|                                 |  | 2007                        |          
|                                 |  | (U.S. Dollars in thousands) |          
|Loans                            |  | US$                         | 6,520,116
|Leasing transactions             |  |                             | 1,118,301
|Discounted notes                 |  |                             | 325,047  
|Factoring                        |  |                             | 109,928  
|Advances and overdrafts          |  |                             | 127,486  
|Refinanced loans                 |  |                             | 88,451   
|Past-due loans                   |  |                             | 61,488   
|Unearned interest                |  |                             | (166,972 
|Total loans:                     |  | US$                         | 8,183,845
|Total
    past-due loans amounts |  |                             | (61,488  
|Total
    performing loans       |  | US$                         | 8,122,357



The
loan portfolio categories set forth in the table above are based on SBS regulations, which apply to loans generated by BCP and
ASHC. Pursuant to SBS guidelines, we categorize loans as follows:



| | • | Loans:
                                                                  Basic term loans documented by promissory notes and other extensions
                                                                  of credit, such as mortgage loans, credit cards and other consumer
                                                                  loans in various forms, including trade finance loans to importers
                                                                  and exporters on specialized terms adapted to the needs of the
                                                                  international trade transaction.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Leasing
                                                                  Transactions: Transactions that involve our acquisition of an
                                                                  asset and the financial leasing of that asset to a client.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Discounted
                                                                  Notes: Loans discounted at the outset (the client signs a promissory
                                                                  note or other evidence of indebtedness for the principal amount
                                                                  payable at a future date). Discounted loans also include discounting
                                                                  of drafts, where we make a loan supported by a draft signed
                                                                  by one party and discounted by another party, with recourse
                                                                  to both parties.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



73







| | • | Factoring:
                                                                  The sale of title to a company’s accounts receivables
                                                                  to a bank (or financial company). The receivables are sold without
                                                                  recourse, and the bank cannot recover from the seller in the
                                                                  event that the accounts are uncollectible. Under factoring loans,
                                                                  the seller receives funds from the bank prior to the average
                                                                  maturity date based on the invoice amount of the receivable,
                                                                  less cash discounts and allowances for estimated claims and
                                                                  returns, among other items.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Advances
                                                                  and Overdrafts: Extensions of credit to clients by way of an
                                                                  overdraft facility in the client’s checking account. This
                                                                  category also includes secured short-term advances.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Refinanced
                                                                  Loans: Loans that were refinanced because the client was unable
                                                                  to pay at maturity. A loan is categorized as a refinanced loan
                                                                  when a debtor is experiencing payment problems, unless the debtor
                                                                  is current on all interest payments and pays down at least 20%
                                                                  of the principal amount of the original loan. We have distinguished
                                                                  a sub-group titled “Restructured Loans,” which is
                                                                  defined as loans extended under the bankruptcy protection procedures
                                                                  established in the Equity Restructuring Law.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Past-Due
                                                                  Loans: Includes overdue loans. See “—Past-Due Loan
                                                                  Portfolio” for further detail.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Loans
by Economic Activity



The
following table shows our total loan portfolio composition, net of unearned interest, based on the borrower’s principal
economic activity:





|                                          |  | At December 31,                                 |          
|----------------------------------------- |  | ----------------------------------------------- | ---------
|                                          |  | 2007                                            |          
|                                          |  | (U.S. Dollars in thousands, except percentages) |          
|                                          |  | Amount                                          |          
|Economic
    Activity                     |  |                                                 |          
|Manufacturing                             |  | US$                                             | 2,204,481
|Consumer Loans (1)                        |  |                                                 | 2,480,916
|Commerce                                  |  |                                                 | 884,253  
|Realty Business and Leasing Services      |  |                                                 | 387,180  
|Mining                                    |  |                                                 | 463,577  
|Communication, Storage and Transportation |  |                                                 | 394,986  
|Electricity, Gas and Water                |  |                                                 | 341,718  
|Agriculture                               |  |                                                 | 179,509  
|Fishing                                   |  |                                                 | 134,235  
|Financial Services                        |  |                                                 | 219,850  
|Education, Health and Other Services      |  |                                                 | 106,423  
|Construction                              |  |                                                 | 201,298  
|Others (2)                                |  |                                                 | 352,391  
|Sub
    total                             |  |                                                 | 8,350,817
|Unearned
    interest                     |  |                                                 | (166,972 
|Total                                     |  | US$                                             | 8,183,845



|                                          |  | At December 31,                                 |           
|----------------------------------------- |  | ----------------------------------------------- | ----------
|                                          |  | 2010                                            |           
|                                          |  | (U.S. Dollars in thousands, except percentages) |           
|                                          |  | Amount                                          |           
|Economic
    Activity                     |  |                                                 |           
|Manufacturing                             |  | US$                                             | 3,003,465 
|Consumer Loans (1)                        |  |                                                 | 4,759,207 
|Commerce                                  |  |                                                 | 1,931,441 
|Realty Business and Leasing Services      |  |                                                 | 712,330   
|Mining                                    |  |                                                 | 893,145   
|Communication, Storage and Transportation |  |                                                 | 720,749   
|Electricity, Gas and Water                |  |                                                 | 969,437   
|Agriculture                               |  |                                                 | 293,685   
|Fishing                                   |  |                                                 | 134,811   
|Financial Services                        |  |                                                 | 252,869   
|Education, Health and Other Services      |  |                                                 | 177,206   
|Construction                              |  |                                                 | 132,517   
|Others (2)                                |  |                                                 | 640,205   
|Sub
    total                             |  |                                                 | 14,621,067
|Unearned interest                         |  |                                                 | (343,003  
|Total                                     |  | US$                                             | 14,278,064



74







| | (1) | These
                                                           amounts comprise:
| | --- | ----------------------------------------------------------------------------------



|               |  | 2007                            |           |  | 2008 |  |           | 2009 |  |  | 2010      |  |  | 2011 |          
|-------------- |  | ------------------------------- | --------- |  | ---- |  | --------- | ---- |  |  | --------- |  |  | ---- | ---------
|               |  | (U.S.
    Dollars in thousands) |          
|               |  |                                 |           |  |      |  |           |      |  |  |           |  |  |      |          
|Personal Loans |  |                                 | 510,338   |  |      |  | 666,661   |      |  |  | 976,499   |  |  |      | 1,147,274
|Mortgage Loans |  |                                 | 1,121,775 |  |      |  | 1,484,495 |      |  |  | 1,752,460 |  |  |      | 2,058,403
|Small Business |  |                                 | 493,360   |  |      |  | 606,168   |      |  |  | 739,157   |  |  |      | 953,394  
|Credit card    |  |                                 | 355,443   |  |      |  | 389,374   |      |  |  | 495,333   |  |  |      | 600,136  
|               |  |                                 | 2,480,916 |  |      |  | 3,146,698 |      |  |  | 3,963,449 |  |  |      | 4,759,207



| | (2) | Includes
                                                           community services, hotels and restaurants and other sector.
| | --- | --------------------------------------------------------------------------------------------------------------------------------



As
of December 31, 2011, 74.7% of the loan portfolio was concentrated in Lima, 88.7% was concentrated in Peru, and 4.3% of the loan
portfolio was concentrated in Bolivia.



Concentrations
of Loan Portfolio and Lending Limits



We
have loans and other contingent credits with 20 customers (considered economic groups), which, as of December 31, 2011, was US$3,379.3
million. The amount of outstanding loans, US$3,379.3 million, represents 19.0% of the total loan portfolio. See “—(11)
Supervision and Regulation—(ii) BCP—Lending Activities” for the definition of “economic group.”
Our total loans and other contingent credits outstanding to these customers ranged from US$369.1 million to US$115.2 million,
including 18 customers with over US$122.5 million. Total loans and other contingent credits outstanding to our 20 largest customers
were ranked in the following risk categories as of December 31, 2011: Class A (normal)—99.9%; Class B (potential problems)—0.1%;
Class C (substandard)—0%; Class D (doubtful)—0%; and Class E (loss)—0%. See “—Classification of
the Loan Portfolio.”



BCP’s
loans to a single borrower are subject to lending limits imposed by Law 26702. See “—(11) Supervision and Regulation—(ii)
BCP—Lending Activities.” The lending limits depend on the nature of the borrower involved and the type of collateral
received. The sum of BCP’s loans to and deposits in either another Peruvian universal bank or Peruvian financial institution,
plus any guarantees of third party performance received by BCP from such institution, may not exceed 30% of BCP’s regulatory
capital (as defined by the SBS). The sum of BCP’s loans to and deposits in non-Peruvian financial institutions, plus any
guarantees of third party performance received by BCP from such institutions, are limited to 5%, 10% or 30% of BCP’s regulatory
capital, depending upon the level of government supervision of the institution and whether the institution is recognized by the
Central Bank as an international bank of prime credit quality. The limits on lending to non-Peruvian financial institutions increases
to 50% of BCP’s regulatory capital if the amount by which such loans exceed the 5%, 10% or 30% limits is backed by certain
letters of credit.



75







BCP’s
loans to directors and employees and their relatives have a global limit of 7% of regulatory capital and an individual limit of
5% of such global limit.



Loans
to non-Peruvian individuals or companies that are not financial institutions have a limit of 5% of BCP’s regulatory capital.
However, this limit increases to 10% if the additional 5% is guaranteed by a mortgage or certain publicly-traded securities. The
limit rises to 30% if the additional amount is guaranteed by certain banks or by cash deposits in BCP. Lending on an unsecured
basis to individuals or companies residing in Peru that are not financial institutions is limited to 10% of BCP’s regulatory
capital. This limit rises to 15% if the additional 5% is guaranteed by a mortgage, certain securities, equipment or other collateral,
and to 20% if the additional amount is either backed by certain debt instruments guaranteed by other local banks or a foreign
bank determined by the Central Bank to be of prime credit quality, or by other highly liquid securities at market value. The single
borrower lending limit for loans backed by a cash deposit at BCP or by debt obligations of the Central Bank is 30% of BCP’s
regulatory capital.



With
an unconsolidated regulatory capital of S/.7,201.5 million (US$2,671.2 million) on December 31, 2011, BCP’s legal lending
limits varied from S/.720.2 million (US$267.1 million) to S/.3,600.8 million (US$1,335.6 million). Our consolidated lending limits,
based on its regulatory capital on a consolidated basis of US$3,022.7 million on December 31, 2011, ranged from US$302.3 million
to US$1,511.4 million. As of December 31, 2011, BCP was in compliance with Law 26702 lending limits.



As
of December 31, 2011, we complied with the applicable legal lending limits in each of the jurisdictions in which we operate. These
limits are calculated quarterly based upon our consolidated equity plus reserves for impaired loans not specifically identified
at quarter-end. We have also set internal lending limits, which are more restrictive than those imposed by law. A limited number
of exceptions to our internal limits have been authorized by our board of directors based on the credit quality of the borrower,
the term of the loan, and the amount and quality of collateral provided. We may, in appropriate and limited circumstances, increase
or choose to exceed these internal limits as long as our credit exposure does not exceed the legal lending limits.



We
may experience an adverse impact on our financial condition and results of operations if (i) customers to which we have significant
credit exposure are not able to satisfy their obligations to us, and any related collateral is not sufficient to cover these obligations,
or (ii) a reclassification of one or more of these loans or other contingent credits results in an increase in provisions for
loan losses.



Loan
Portfolio Denomination



The
following table presents our Nuevo Sol and foreign currency-denominated loan portfolio at the dates indicated:



|                             |  | At December 31,                                 |          
|---------------------------- |  | ----------------------------------------------- | ---------
|                             |  | 2007                                            |          
|                             |  | (U.S. Dollars in thousands, except percentages) |          
|Total loan portfolio:        |  |                                                 |          
|Nuevo Sol-denominated        |  | US$                                             | 2,461,787
|Foreign Currency-denominated |  |                                                 | 5,722,058
|Total
    loans (1)          |  | US$                                             | 8,183,845



|                             |  | At December 31,                                 |           
|---------------------------- |  | ----------------------------------------------- | ----------
|                             |  | 2010                                            |           
|                             |  | (U.S. Dollars in thousands, except percentages) |           
|Total loan portfolio:        |  |                                                 |           
|Nuevo Sol-denominated        |  | US$                                             | 5,415,352 
|Foreign Currency-denominated |  |                                                 | 8,862,712 
|Total
    loans (1)          |  | US$                                             | 14,278,064



| | (1) | Net
                                                           of unearned interest.
| | --- | ------------------------------------------------------------------------------------



76







Maturity
Composition of the Performing Loan Portfolio



The
following table sets forth an analysis of our performing loan portfolio on December 31, 2011, by type and by time remaining to
maturity. Loans are stated before deduction of the reserves for loan losses.



|                                     |  | Maturing                                        |           
|------------------------------------ |  | ----------------------------------------------- | ----------
|                                     |  | Amount at
    December 31, 2011                 |           
|                                     |  | (U.S. Dollars in thousands, except percentages) |           
|Loans                                |  | US$                                             | 13,793,797
|Leasing transactions                 |  |                                                 | 2,786,129 
|Discounted notes                     |  |                                                 | 552,233   
|Refinanced loans                     |  |                                                 | 96,031    
|Factoring                            |  |                                                 | 254,516   
|Advances and overdrafts              |  |                                                 | 25,130    
|Total                                |  | US$                                             | 17,507,836
|Past due Loans                       |  |                                                 | 259,050   
|Unearned interest                    |  |                                                 | (446,508  
|Total
    Loans                      |  | US$                                             | 17,320,378
|% of total performing loan portfolio |  |                                                 | 100.00    



Interest
Rate Sensitivity of the Loan Portfolio



The
following table sets forth the interest rate sensitivity of our loan portfolio on December 31, 2011, by currency and by the time
remaining to maturity over one year:



|                             |  | Amount at
    December 31, 2011 |            |  | Maturing
    After 1 year |    
|---------------------------- |  | ------------------------------- | ---------- |  | ------------------------- | ---
|                             |  | (U.S. Dollars in thousands)     |           
|Variable Rate                |  |                                 |            |  |                           |    
|Nuevo Sol-denominated        |  | US$                             | 268,450    |  |                           | US$
|Foreign Currency-denominated |  |                                 | 2,568,283  |  |                           |    
|Total                        |  |                                 | 2,836,733  |  |                           |    
|                             |  |                                 |            |  |                           |    
|Fixed
Rate (2)               |  |                                 |            |  |                           |    
|Nuevo Sol-denominated        |  |                                 | 6,713,636  |  |                           |    
|Foreign Currency-denominated |  |                                 | 7,770,009  |  |                           |    
|Total                        |  |                                 | 14,483,645 |  |                           |    
|                             |  |                                 |            |  |                           |    
|Total (1)                    |  | US$                             | 17,320,378 |  |                           | US$

(1)      Net
of unearned interest.

(2)      Most
of the financial products with fixed rates can be switched to variable rates according to market conditions as specified on the
contracts with clients.



77







Classification
of the Loan Portfolio



We
classify BCP’s loan portfolio (which includes the loan portfolio of BCP Bolivia, Edyficar and Solucion EAH) and ASB’s
loan portfolio in accordance with internal practices. According to these criteria, all loans and other credits are classified
into one of four categories based upon the purpose of the loan. These categories are commercial, micro-business, consumer and
residential mortgage. Commercial loans are generally those that finance the production and sale of goods and services, including
commercial leases, as well as credit card debt on cards held by business entities. Micro-business loans, which are exclusively
targeted for the production and sale of goods and services, are made to individuals or companies with no more than S/.300,000
in total loans received from the financial system (excluding mortgage loans). Consumer loans are generally loans granted to individuals,
including credit card transactions, overdrafts on personal demand deposit accounts, leases, and financing goods or services not
related to a business activity. Residential mortgage loans are all loans to individuals for the purchase, construction, remodeling,
subdivision or improvement of the individual’s home, in each case backed by a mortgage. Mortgage loans made to directors
and employees of a company are also considered residential mortgage loans. Mortgage-backed loans are considered commercial loans.
The classification of the loan determines the amount to reserve should the borrower fail to make payments as they become due.



The
following table sets forth our loan portfolio by class at the date indicated.



|                                                 |  | At December 31,                 |          
|------------------------------------------------ |  | ------------------------------- | ---------
|                                                 |  | 2007                            |          
|                                                 |  | (U.S. Dollars in thousands) (1) |          
|Commercial loans (which includes micro-business) |  | US$                             | 6,055,206
|Consumer loans                                   |  |                                 | 874,804  
|Residential mortgage loans                       |  |                                 | 1,253,835
|Total
    loans                                  |  | US$                             | 8,183,845



| | (1) | Net
                                                           of unearned interest.
| | --- | ------------------------------------------------------------------------------------



We
employ a range of policies and practices to mitigate credit risk. Our most traditional practice is taking security for fund advances.
We implement guidelines on the acceptability of specific classes of collateral or credit risk mitigation. The principal collateral
types 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).



Long
term finance and lending to corporate entities are generally secured, while revolving individual credit facilities are generally
unsecured. In order to minimize credit loss, we seek additional collateral as soon as impairment indicators become apparent.



We
determine the appropriate collateral to hold as security for financial assets (other than loans) according to the nature of the
instrument. Debt securities, treasury and other eligible bills are generally unsecured, with the exception of asset-backed securities
and other similar instruments, which are secured by portfolios of financial instruments.



Our
management monitors the market value of collateral, requests additional collateral in accordance with the underlying agreement,
and monitors the market value of the additional collateral obtained during its review of the allowance for impairment losses.
Our policy is to dispose of repossessed properties in an orderly manner. We use the proceeds to reduce or repay the outstanding
claim. In general, we do not use repossessed properties for our own business.



Regulations
promulgated by the SBS also require Peruvian banks to classify all loans into one of five categories depending upon each loan’s
degree of risk of nonpayment. We review our loan portfolio on a continuing basis, while the SBS reviews our portfolio as it deems
necessary or prudent. In compliance with SBS guidelines, we classify our loans based upon risk of nonpayment by assessing the
following factors: (i) the payment history of the particular loans, (ii) the history of our dealings with the borrower, (iii)
the borrower’s management, (iv) the borrower’s operating history, (v) the borrower’s repayment capability, (vi)
the borrower’s availability of funds, (vii) the status of any collateral or guarantee, (viii) the borrower’s financial
statements, (iv) the general risk of the sector in which the borrower operates, (x) the borrower’s risk classification made
by other financial institutions and (xi) other relevant factors. The classification of the loan determines the amount of the required
loan loss provision.



78







We
classify our loan portfolio into one of five risk categories, depending upon the degree of risk of non-payment of each debtor.
These categories are: (i) normal, (ii) potential problems, (iii) substandard, (iv) doubtful and (v) loss. The categories have
the following characteristics:



Normal
(Class A): Debtors with commercial loans in this category have complied on a timely basis with their obligations under the loan.
At the time of evaluation, there is no reason to doubt the debtor’s ability to repay interest and principal on the agreed
dates, and there is no reason to believe that the status will change before the next evaluation. Before we place a loan in Class
A, we must have a clear understanding of the use of the funds and the origin of the cash flows to be used by the debtor to repay
the loan. Consumer loans are categorized as Class A when payments are current or up to eight days past due. Residential mortgage
loans are categorized as Class A when payments are current or up to 30 days past due.



Potential
problems (Class B): Debtors with commercial loans in this category demonstrate certain deficiencies at the time of evaluation,
which, if not corrected in a timely manner, imply risks regarding the recovery of the loan. Common characteristics of loans or
credits in this category include: (i) delays in loan payments which are promptly covered, (ii) a general lack of information required
to analyze the credit, (iii) out-of-date financial information, (iv) temporary economic or financial imbalances on the part of
the debtor which could affect its ability to repay the loan, (v) market conditions that could affect the economic sector in which
the debtor is active. Consumer loans are categorized as Class B when payments are between nine and 30 days past due. Residential
mortgage loans are categorized as Class B when payments are between 31 and 90 days past due.



Substandard
(Class C): Debtors with commercial loans in this category demonstrate serious financial weakness. They often do not have sufficient
operating results or available income to cover their financial obligations, and do not have reasonable short-term prospects for
strengthening their financial capacity. Debtors demonstrating the same deficiencies that warrant Class B classification will warrant
Class C classification if those deficiencies are such that if not corrected in the near term, they could impede the recovery of
principal and interest on the loan on the agreed-upon terms. Commercial loans are classified in this category when payments are
between 61 and 120 days past due. Consumer loans are categorized as Class C when payments are between 31 and 60 days past due.
Residential mortgage loans are categorized as Class C when payments are between 91 and 120 days past due.



Doubtful
(Class D): Debtors with commercial loans in this category demonstrate characteristics that make it doubtful that the loan will
be recovered. Although recovery is doubtful, if there is a reasonable possibility that the creditworthiness of the debtor might
improve in the near future, it is appropriate to categorize the loan as Class D. These loans are distinguished from Class E loans
by the requirement that the debtor remain in operation, generate cash flow, and make payments on the loan, even if the payments
are less than those required by the contract. Commercial loans are categorized as Class D if payments are between 121 and 365
days past due. Consumer loans are categorized as Class D when payments are between 61 and 120 days past due. Residential mortgage
loans are categorized as Class D when payments are between 121 and 365 days past due.



Loss
credits (Class E): Commercial loans or credits are categorized as Class E if the loans are considered unrecoverable or for any
other reason the loans should not appear on our books as an asset based on the originally contracted terms. Commercial loans are
categorized as Class E when payments are more than 365 days past due. Consumer loans are categorized as Class E when payments
are more than 120 days past due. Residential mortgage loans are categorized as Class E when payments are more than 365 days past
due.



We
continually review our loan portfolio to assess the completion and accuracy of the grades awarded.



All
loans considered impaired (those classified as substandard, doubtful or loss) are analyzed by management. Management will address
the impairment in two areas, individually assessed allowances and collectively assessed allowances, as follows:



79







Individually
Assessed Allowance



We
determine the appropriate allowances for each individually significant loan or advance on an individual basis. In determining
the allowance, we consider items such as (i) the sustainability of the party’s business plan, (ii) its ability to improve
performance once a financial difficulty has arisen, (iii) projected receipts and the expected dividend payout should bankruptcy
ensue, (iv) the availability of other financial support and the potential realized value of collateral, and (v) the timing of
the expected cash flows. Impairment losses are evaluated at each reporting date, unless unforeseen circumstances require more
attention.



Collectively
Assessed Allowance



We
assess allowances collectively for (i) losses on loans and advances that are not individually significant (including consumer
and residential mortgages) and (ii) individually significant loans and advances where there is not yet objective evidence of individual
impairment (the Class A and B loans). We evaluate allowances on each reporting date, and each portfolio receives a separate review.



Our
collective assessment takes into account an impairment that is likely to be present in the portfolio even though there is no objective
evidence of the impairment in an individual assessment. We estimate impairment losses by considering the following information:
(i) historical losses on the portfolio, (ii) current economic conditions, (iii) the approximate delay between the time a loss
is likely to be incurred and the time it will be identified as requiring an individually assessed impairment allowance and (iv)
expected receipts and recoveries once the impairment occurs. Local management is responsible for deciding the appropriate length
of time, which can extend as long as one year. The impairment allowance is then reviewed by credit management to ensure it aligns
with our overall policy.



We
assess financial guarantees and letters of credit in the same way we assess loans.



When
the borrower is located in a country where there is an increased risk of difficulty servicing external debt, we assess the political
and economic situation, and an additional country risk provision is provided.



When
we determine a loan is uncollectible, it is written off against the provision for loan impairment. We write off these loans after
all necessary procedures are completed and the amount of the loss is determined. Subsequent recoveries of amounts previously written
off decrease the amount of the provision for loan impairment in our consolidated income statements.



The
following table shows our direct loan portfolio at the dates indicated:



|                      |  | At December 31,                                 |          
|--------------------- |  | ----------------------------------------------- | ---------
|                      |  | 2007                                            |          
|                      |  | (U.S. Dollars in thousands, except percentages) |          
|Level of Risk         |  |                                                 |          
|Classification        |  | Amount                                          |          
|A: Normal             |  | US$                                             | 7,600,283
|B: Potential Problems |  | US$                                             | 371,119  
|C: Substandard        |  | US$                                             | 71,340   
|D: Doubtful           |  | US$                                             | 88,540   
|E: Loss               |  | US$                                             | 52,563   
|Total (1)             |  | US$                                             | 8,183,845
|C+D+E                 |  | US$                                             | 210,379  



80







|                      |  | At December 31,                                 |           
|--------------------- |  | ----------------------------------------------- | ----------
|                      |  | 2010                                            |           
|                      |  | (U.S. Dollars in thousands, except percentages) |           
|Level of Risk         |  |                                                 |           
|Classification        |  | Amount                                          |           
|A: Normal             |  | US$                                             | 13,564,435
|B: Potential Problems |  | US$                                             | 313,148   
|C: Substandard        |  | US$                                             | 128,445   
|D: Doubtful           |  | US$                                             | 121,345   
|E: Loss               |  | US$                                             | 150,691   
|Total (1)             |  | US$                                             | 14,278,064
|C+D+E                 |  | US$                                             | 400,481   

| | (1) | Net
                                                               of unearned interest – The unearned interest from impaired
                                                               classifications (C+D+E) amounts
approximately to US$201,000 in 2007, US$250,000 in 2008, US$44,000 in
2009, US$159,000 in 2010 and US$12,000 in 2011.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



All
of our Class E loans and substantially all of our Class D loans are past due. Class C loans, although generally not past due,
have demonstrated credit deterioration such that management has serious doubts as to the ability of the borrower to comply with
the loan repayment terms. Our manufacturing sector loans are primarily secured by warrants and liens on goods or by mortgages,
and our agricultural loans tend to be secured by trade bills and marketable securities. The Class C loans reflect the financial
weakness of the individual borrower rather than any trend in the Peruvian manufacturing or agricultural industries in general.



Classification
of the Loan Portfolio Based on the Borrower’s Payment Performance



We
consider loans to be past due depending on their type. In accordance with SBS Resolution N°11356- 2008, BCP considers loans
past due for corporate, large business and medium business loans after 15 days; for small and micro business loans after 30 days;
and for consumer, mortgage and leasing loans after 90 days. On January 1, 2001, the SBS issued accounting rules that require Peruvian
banks to consider overdrafts past due after 30 days. ASHC considers all overdue loans past due, except for consumer loans, which
are considered past due when the scheduled principal and/or interest payments are overdue for more than 90 days. BCP Bolivia considers
loans past due after 30 days. For IFRS 7 disclosure requirements on past-due loans, see Note 29.1 to the Consolidated Financial
Statements.



Interest
income is suspended when the collection of loans is doubtful, such as when overdue by more than 90 days. When a borrower or securities
issuer defaults earlier than 90 days, the income is excluded from interest income until it is received. Uncollected income on
these loans is applied against income. When management determines that the debtor’s financial condition has improved (a
debtor’s financial condition is only considered improved once the debtor has already paid the principal and interest due
on its loans), we continue recording interest on an accrual basis. Therefore, we do not accrue interest on past-due loans, but
interest on past-due loans is recognized only when and to the extent received.



Over
the past five years, we have recognized interest income on these loans of US$3.6 million in 2007, US$5.2 million in 2008, US$7.2
million in 2009, US$14.2 million in 2010 and US$15.4 million in 2011. With the exception of discounted notes and overdrafts, accrued
but unpaid interest is reversed for past-due loans.



The
following table sets forth the repayment status of our loan portfolio as of the date indicated.



81







|                                              |  | At December 31,                                 |          
|--------------------------------------------- |  | ----------------------------------------------- | ---------
|                                              |  | 2007                                            |          
|                                              |  | (U.S. Dollars in thousands, except percentages) |          
|Current                                       |  | US$                                             | 8,122,357
|Past due:                                     |  |                                                 |          
|Overdue
    16 - 119 days                     |  |                                                 | 20,825   
|Overdue 120 days
    or more                  |  |                                                 | 40,663   
|Subtotal                                      |  | US$                                             | 61,488   
|Total
    loans                               |  | US$                                             | 8,183,845
|Past-due loan amounts as % of total
    loans |  |                                                 | 0.75     



With
respect to consumer, mortgage and leasing loans, BCP (in accordance with SBS regulations) only recognizes payments as past-due
installments if the loan is less than 90 days past due. The entire amount of the loans is considered past due if any amount is
past due more than 90 days. For IFRS 7 disclosure requirements on past-due loans, see Note 29.1 to the Consolidated Financial
Statements.



Past-Due
Loan Portfolio



The
following table analyzes our past-due loan portfolio by the type of loan at the dates indicated.



|                                           |  | At December 31,             |         
|------------------------------------------ |  | --------------------------- | --------
|                                           |  | 2007                        |         
|                                           |  | (U.S. Dollars in thousands) |         
|Past-due loan amounts:                     |  |                             |         
|Loans                                      |  | US$                         | 48,088  
|Discounted notes                           |  |                             | 636     
|Advances and overdrafts in demand deposits |  |                             | 3,974   
|Leasing transactions                       |  |                             | 2,110   
|Refinanced loans                           |  |                             | 6,680   
|Total past-due portfolio                   |  | US$                         | 61,488  
|Less:
    Reserves for loan losses (1)     |  | US$                         | 229,700 
|Total past-due portfolio net of reserves   |  | US$                         | (168,212



| | (1) | Includes
                                                           reserves for indirect credits (see “—Loan Loss Reserves”).
| | --- | ------------------------------------------------------------------------------------------------------------------------------



We
recognize interest on past-due loans and loans in legal collection when the loans are collected. The interest income that would
have been recorded for these credits in accordance with the terms of the original contract is approximately US$49.8 million and
US$38.5 million as of December 31, 2011 and 2010, respectively.



Loan
Loss Reserves



The
following table shows the changes in our reserves for loan losses and movements at the dates indicated.



|                                                          |  | Year ended December 31,     |        
|--------------------------------------------------------- |  | --------------------------- | -------
|                                                          |  | 2007                        |        
|                                                          |  | (U.S. Dollars in thousands) |        
|Reserves for loan losses at the beginning
    of the year |  | US$                         | 210,586
|Additional provisions (reversals)                         |  |                             | 28,439 
|Acquisitions and transfers                                |  |                             | -      
|Recoveries of write-offs                                  |  |                             | 34,084 
|Write-offs                                                |  |                             | (47,266
|Monetary correction and other                             |  |                             | 3,857  
|Total reserves for loan losses at the
    end of the year |  | US$                         | 229,700



82







For
a discussion of the risk elements in the loan portfolio and the factors considered in determining the amount of specific reserves,
See “—Classification of the Loan Portfolio.” The balance of the reserve for loan losses for the years 2008,
2009 and 2010 are included in Note 6(d) to the Consolidated Financial Statements.



Our
reserves for loan losses, as of December 31, 2011, included US$519.7 million for credit losses and US$38.5 million for indirect
or contingent credit losses (US$415.7 million and US$32.9 million as of December 31, 2010, respectively). Our reserves for indirect
credit losses are included in the “Other liabilities” caption of our consolidated balance sheet. See Notes 6(d) and
11(a) to the Consolidated Financial Statements.



The
charge-off process is performed with prior approval of our board of directors and the SBS. Potential charge-offs are considered
by the board of directors and the SBS on a case-by-case basis.



Allocation
of Loan Loss Reserves



The
following table sets forth the amounts of our reserves for loan losses attributable to commercial, consumer and residential mortgage
loans at the dates indicated (see also Note 6(d) to the Consolidated Financial Statements):



|                               |  | At December 31,             |        
|------------------------------ |  | --------------------------- | -------
|                               |  | 2007                        |        
|                               |  | (U.S. Dollars in thousands) |        
|Commercial loans               |  | US$                         | 184,584
|Consumer loans                 |  |                             | 30,662 
|Residential mortgage
    loans |  |                             | 14,454 
|Total
    reserves             |  | US$                         | 229,700



| | (iv) | Deposits
| | ---- | --------



The
following table presents the components of our deposit base at the dates indicated:



|                                    |  | At December 31,             |           
|----------------------------------- |  | --------------------------- | ----------
|                                    |  | 2009                        |           
|                                    |  | (U.S. Dollars in thousands) |           
|Demand deposits:                    |  |                             |           
|Nuevo Sol-denominated               |  | US$                         | 1,944,404 
|Foreign
    Currency-denominated    |  |                             | 2,612,342 
|Total                               |  | US$                         | 4,556,746 
|Savings deposits:                   |  |                             |           
|Nuevo Sol-denominated               |  | US$                         | 1,505,994 
|Foreign Currency-denominated        |  |                             | 2,033,671 
|Total                               |  | US$                         | 3,539,665 
|Time deposits:                      |  |                             |           
|Nuevo Sol-denominated               |  | US$                         | 1,662,941 
|Foreign Currency-denominated        |  |                             | 3,088,920 
|Total                               |  | US$                         | 4,751,861 
|Foreign Currency Bank Certificates  |  |                             |           
|Foreign Currency-denominated        |  | US$                         | 114,401   
|Severance Indemnity Deposits (CTS): |  |                             |           
|Nuevo Sol-denominated               |  | US$                         | 256,761   
|Foreign Currency-denominated        |  |                             | 812,745   
|Total                               |  | US$                         | 1,069,506 
|Total deposits:                     |  |                             |           
|Nuevo Sol-denominated               |  | US$                         | 5,370,100 
|Foreign Currency-denominated        |  |                             | 8,662,079 
|Total                               |  | US$                         | 14,032,179



83







The
following table sets forth information regarding the maturity of our time deposits in denominations of US$100,000 or more on December
31, 2011:



|                                           |  | At
    December 31, 2011        |          
|------------------------------------------ |  | ------------------------------- | ---------
|                                           |  | (U.S. Dollars
    in thousands) |          
|Certificates of deposit:                   |  |                                 |          
|Maturing within 30
    days                |  | US$                             | 5,578    
|Maturing
    after 30 but within 60 days   |  |                                 | 127      
|Maturing after 60
    but within 90 days   |  |                                 | 3,622    
|Maturing after 90
    but within 180 days  |  |                                 | 1,823    
|Maturing after 180
    but within 360 days |  |                                 | 102      
|Maturing after 360
    days                |  |                                 | 23,292   
|Total certificates of deposits             |  | US$                             | 34,544   
|Time deposits:                             |  |                                 |          
|Maturing within 30
    days                |  | US$                             | 2,165,898
|Maturing after 30
    but within 60 days   |  |                                 | 376,106  
|Maturing after 60
    but within 90 days   |  |                                 | 167,856  
|Maturing after 90
    but within 180 days  |  |                                 | 307,101  
|Maturing after 180
    but within 360 days |  |                                 | 873,684  
|Maturing after 360
    days                |  |                                 | 409,553  
|Total time deposits                        |  |                                 | 4,300,198
|Total                                      |  | US$                             | 4,334,742



| | (v) | Return
                                                                      on Equity and Assets
| | --- | -------------------------------------------------------------------------------------------------



|                                             |  | At December 31, |      
|-------------------------------------------- |  | --------------- | -----
|                                             |  | 2009            |      
|                                             |  |                 |      
|Return on assets (1)                         |  |                 | 2.19 
|                                             |  |                 |      
|Return on equity (2)                         |  |                 | 23.72
|                                             |  |                 |      
|Dividend payout ratio (3)                    |  |                 | 28.86
|                                             |  |                 |      
|Equity to assets ratio (4)                   |  |                 | 10.00
|                                             |  |                 |      
|Shareholders’ equity to assets
    ratio (5) |  |                 | 9.31 

| | (1) | Net
                                                           income attributable to our equity holders as a percentage of average
                                                           total assets, computed as the average of period
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

beginning
and period ending balances.

| | (2) | Net
                                                           income attributable to our equity holders as a percentage of average
                                                           net equity attributable to our equity holders, computed as the average
                                                           of monthly balances.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | Dividends
                                                                             declared per share divided by net income attributable
                                                                             to our equity holders per share.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



84







| | (4) | Average
equity attributable to our equity holders divided by average total assets, both averages computed as the average of month-ending
balances.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | Average
equity attributable to our equity shareholders divided by average total assets, both averages computed as the average of month-ending
balances.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | Short-Term
                                                                       Borrowing
| | ---- | -------------------------------------------------------------------------------------------



Our
short-term borrowing, other than deposits, amounted to US$673.2 million and US$351.8 million and US$762.9 million as of December
31, 2009, 2010 and 2011, respectively. Our average balances of borrowed amounts decreased in 2010 due to receiving lower promotional
credit lines and increased in 2011 as a result of growth in foreign trade transactions. As of December 31, 2009, 2010 and 2011,
no BCRP-Repo transactions exist in the outstanding balance.



The
following table sets forth our short-term borrowing:



|                                                    |  | At December 31,                                 |          
|--------------------------------------------------- |  | ----------------------------------------------- | ---------
|                                                    |  | 2009                                            |          
|                                                    |  | (U.S. Dollars in thousands, except percentages) |          
|                                                    |  |                                                 |          
|Year-end balance                                    |  | US$                                             | 673,234  
|                                                    |  |                                                 |          
|Average balance                                     |  |                                                 | 641,177  
|                                                    |  |                                                 |          
|Maximum quarter-end balance                         |  |                                                 | 1,141,131
|                                                    |  |                                                 |          
|Weighted-average nominal year-end interest
    rate |  |                                                 | 2.83     
|                                                    |  |                                                 |          
|Weighted-average nominal interest rate              |  |                                                 | 3.40     



| | (C) | Organizational
Structure
| | --- | ------------------------



The
following tables show our organizational structure and the organization of our principal subsidiaries as of December 31, 2011
and their relative percentage contribution to our total assets, total revenues, net income and net equity at the same date:



85











|                                                                   |  | As of and for the Year ended December 31, 2011(1) |     
|------------------------------------------------------------------ |  | ------------------------------------------------- | ----
|                                                                   |  | Total Assets                                      |     
|Banco de Crédito
    del Perú                                      |  |                                                   | 87.4
|Atlantic Security Holding Corporation                              |  |                                                   | 4.8 
|El Pacífico-Peruano Suiza Compañía
    de Seguros y Reaseguros (2) |  |                                                   | 6.8 
|Prima AFP                                                          |  |                                                   | 0.8 
|Others (3)                                                         |  |                                                   | 0.2 



| | (1) | Percentages
                                                           determined based on the Consolidated Financial Statements.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------

| | (2) | Includes
                                                           Grupo Pacífico, Pacífico Vida and Pacífico EPS
                                                           Consolidated.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Includes
                                                           Credicorp Ltd., CCR Inc., Credicorp Securities Inc. and others.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------



The
following tables show the organizational structure of BCP and its principal subsidiaries as of December 31, 2011:







86







We
hold an additional 4.08% stake of BCP Bolivia directly through Credicorp Ltd.



|                                                     |  | As of and for the Year ended December 31, 2011 (1) |     
|---------------------------------------------------- |  | -------------------------------------------------- | ----
|                                                     |  | Total
    Assets                                   |     
|Banco de Crédito
    del Perú                        |  |                                                    | 92.3
|Banco de Crédito de Bolivia                          |  |                                                    | 4.3 
|Empresa Financiera Edyficar S.A.                     |  |                                                    | 2.1 
|Solución Empresa Administradora
    Hipotecaria S.A. |  |                                                    | 0.3 
|Credifondo S.A.                                      |  |                                                    | 0.1 
|Credibolsa Sociedad Agente de Bolsa
    S.A.         |  |                                                    | 0.1 
|Others (2)                                           |  |                                                    | 0.8 



| | (1) | Percentages
                                                           determined based on BCP’s consolidated financial statements as
                                                           of and for the year ended December 31, 2010.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Includes
                                                           Creditítulos S.A., Inmobiliaria BCP, Inversiones BCP Ltd and
                                                           others.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (D) | Property,
                                                                  Plants and Equipment
| | --- | ------------------------------------------------------------------------------------------------



As
of December 31, 2011, we owned 197 properties (191 throughout Peru and 6 in Bolivia) and rented 467 properties (424 throughout
Peru, 40 in Bolivia, 1 in Miami – United States and 2 in Panama), all of which we used for the operation of our network
of branches and our business. We own the buildings where our headquarters are located in Lima- Peru and La Paz – Bolivia.
We do not hold any lease agreement for these purposes. As of December 2011, we had 564 branches, of which 344 were branches of
BCP in Peru. There are no material encumbrances on any of our properties.



| | ITEM
                           4A. | UNRESOLVED
                                                                                        STAFF COMMENTS
| | ----------------------------------- | -----------------------------------------------------------------------------------------------------------------



Not
applicable.



| | ITEM
                           5. | OPERATING
                                                                                       AND FINANCIAL REVIEW AND PROSPECTS
| | ---------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------



| | (A) | Operating
                                                                  Results
| | --- | -----------------------------------------------------------------------------------



| | (1) | Critical
                                                                      Accounting Policies
| | --- | --------------------------------------------------------------------------------------------------



Consolidation



| | (i) | Subsidiaries
| | --- | ------------



Our
subsidiaries are entities (including special purpose entities) for which the Group has the power to govern financial and operating
policies. Such power is generally evidenced by our control of more than one half of the voting rights.



87







The
financial statements of our 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 fair value of consideration transferred (measured at the acquisition date) 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 any 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 will not be
remeasured until it is finally settled.



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.



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 and no additional gain or loss is recognized upon disposal of a non-controlling interest.



88







| | (ii) | Associates
| | ---- | ----------



An
associate is an entity over which the Group has significant influence but not control. Investments in these entities represent
holdings of 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.



Foreign
currency translation



Credicorp’s
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 Company. In addition, Credicorp’s main operations and transactions
in the different countries where it operates 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 converted into U.S. Dollars (functional and presentation currency) as follows:



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

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

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



All
resulting conversion differences are recognized in the consolidated income statement.



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 income statement using the effective interest rate, 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. A debtor’s financial condition is only considered improved
once the debtor has already paid the principal and interest due on its loans.



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.



Fees
and commission income are recognized on an accrual basis when earned. 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.



89







Insurance
activities



Insurance
contracts are those contracts where 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 extinguish or expire.



The
Group cedes insurance risk in the normal course of business for all of its operations. 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 income statement.



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



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.



90







| | (i) | Financial
                                                                      assets and financial liabilities 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 are recorded in the consolidated income statement caption
“Net gain on financial assets and liabilities designated at fair value through profit and loss”. Interest earned or
incurred is accrued in the consolidated income statement in the captions “Interest and dividend income” or “Interest
expense”, respectively, 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,
other than those that the entity intend to sell immediately or in the short term, those that the entity upon initial recognition
designates as available for sale, or those for which the holder may not recover substantially all of its initial investment, other
than because of credit deterioration.



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 income statement 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.



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 on an internal
risk classification, with consideration given to any guarantees and collaterals received. See Note 3(i) and 29.1 to the Consolidated
Financial Statements.



91







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



Available-for-sale
financial investments are non-derivative financial assets that are designated as available-for-sale (to be held for an indefinite
period, which may be sold in response to liquidity needs or changes in the interest rates, exchange rates or equity price); or
are not classified as (a) financial assets and financial liabilities at fair value through profit or loss, (b) held-to-maturity
or (c) loans and receivables.



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 income statement 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 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 may elect to reclassify these financial assets only in rare circumstances, such as when the Group is unable to sell the
assets due to markets inactivity and management’s intent to sell the assets in the foreseeable future has changed significantly.
Reclassification to loans and receivables is permitted when the financial asset meets the definition of loans and receivables
and management has the intent and the ability to hold these assets for the foreseeable future or until maturity. The reclassification
to held to maturity category is permitted only when the entity has the ability and intent to hold the financial asset until maturity.



As
of December, 31, 2011 and 2010, we did not reclassify any of our available-for-sale financial investments.



| | (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 costs that are an integral part of the effective interest
rate.



De-recognition
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.



92







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 an exchange or modification is treated as a derecognition of the original liability
and the recognition of a new liability, any resulting difference in the respective carrying amount is recognized as profit or
loss.





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.



Impairment
of financial assets:



We
assess 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 such loss event(s) 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 recognized,
or continues to be recognized, are not included in a collective assessment of impairment.



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. Loans, together with the associated allowance, are written
off when there is no realistic prospect of future recovery and 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 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 is later recovered, the recovery is recognized in the consolidated income statement, 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.



93







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, past-due
status and other relevant factors.



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 the fair value of the investment
below its cost. “Significant” is 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 the investments available-for-sale reserve of the consolidated statement 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
income statement. 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 the “Interest
and dividend income” portion of the consolidated income statement. If in a subsequent year, the fair value of a debt instrument
increases and the increase is objectively related to an event occurring after the impairment loss was recognized in the consolidated
income statement, the impairment loss will be reversed through the consolidated income statement.



| | (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 will be considered impaired and past due.



Goodwill:



Goodwill
represents the excess of the acquisition cost of a subsidiary over the fair value of the net identifiable assets of the acquired
subsidiary at the date of acquisition. Goodwill is tested annually for impairment to assess whether the carrying amount is fully
recoverable. An impairment loss is recognized if the carrying amount exceeds the recoverable amount. Goodwill is allocated to
cash-generating units for impairment testing purposes.



94







Impairment
of non-financial assets:



The
Group assesses at each reporting date, or more frequently if events or changes in circumstances warrant, whether the carrying
value of non-financial assets may be impaired. If any indication of impairment exists, the Group estimates the asset’s recoverable
amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s (CGU) fair value
less costs to sell and its value in use. Goodwill is tested annually for impairment. Where the carrying amount of an asset (or
cash-generating unit) exceeds its recoverable amount, the asset (or cash-generating unit) is considered impaired and is written
down to its recoverable amount.



For
non-financial assets, excluding goodwill, an assessment is made at each reporting date as to 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; if that is the case, the reversal
is limited so that the carrying amount of the asset neither exceeds its recoverable amount, nor exceeds 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 income statement.



Impairment
losses relating to goodwill cannot be reversed for subsequent increases in its recoverable amount in future periods.



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



Financial
guarantees:



In
the ordinary course of business, the Group grants 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 as the higher of the amortized fee 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 statement of income. The fee received
is recognized in the consolidated statement of income in the caption “Banking services”.



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



95







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.



Share-based
payment transactions



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



As
explained in note 18(a) to the Consolidated Financial Statements, we granted a supplementary remuneration plan to certain employees
who had at least one year of service with 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 rerecorded to fair value at each reporting date up to and including the settlement date, with changes in fair value are recognized
in the consolidated income statement under the caption “Salaries and employee benefits”. When the price or terms of
the SARs are modified, any additional expense is also recorded in the consolidated income statement. See Note 18 to the Consolidated
Financial Statements.



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



As
explain in note 18(b) to the Consolidated Financial Statements, as of April 2009, a new supplementary remuneration plan was implemented
to replace the SARs plan.



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 statement under the caption “Salaries and employees benefits”. When
the terms of an equity-settled award are modified, the minimum expense recognized under the “Salaries and employees benefits”
caption in the consolidated income statement 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.



96







Derivative
financial instruments:



Trading:



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 income statement.



Hedge:



We
use 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.



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 as other comprehensive income in the cash
flow hedge reserve, while any ineffective portion is recognized immediately in the consolidated income statement as finance costs.



Amounts
recognized as other comprehensive income are transferred to the consolidated income statement 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.



If
the forecast transaction or firm commitment is no longer expected to occur, the cumulative gain or loss previously recognized
in the cash flow hedge 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 hedge 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 income statement in finance
costs. 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 in finance costs.



97







For
fair value hedges relating to consolidated items carried at amortized cost, the adjustment to carrying value is amortized through
the consolidated income statement 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.



When
an unrecognized firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm
commitment attributable to the hedged risk is recognized as an asset or liability with a corresponding gain or loss recognized
in the consolidated income statement.



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 were classified at inception
by the Group as “Financial instruments at fair value though profit or loss”. See 3(f)(i), and note 7 to the Consolidated
Financial Statements.



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.



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



| | (2) | Historical
                                                                      Discussion and Analysis
| | --- | --------------------------------------------------------------------------------------------------------



The
Group monitors the results of its operating segments separately for the purpose of making decisions about resource allocation
and performance assessment. Regarding the Group’s segments, total revenues from banking segment amounted to 74% or more
of the Group’s total revenue in 2011, 2010, and 2009; therefore, the following historical discussion and analysis is presented
principally for banking segment, except when otherwise indicated, and is based upon information contained in our Consolidated
Financial Statements and should be read in conjunction therewith. The discussion in this section regarding interest rates is based
on nominal interest rates.



The
financial information and discussion and analysis presented below for 2009, 2010 and 2011 reflect the financial position and results
of operations for 2009, 2010 and 2011 of our subsidiaries. See “Item 3. Key Information—(A) Selected Financial Data.”



On
December 31, 2011, approximately 53.4% of our deposits and 57.0% of our loans were U.S. Dollar-denominated. Despite these high
proportions, U.S. Dollar-denominated deposits have decreased from the previous year (55.4% in 2010) due to the appreciation of
the Nuevo Sol, which encourages clients to maintain deposits in domestic currency.



98







Results
of Operations for the Three Years Ended December 31, 2011



The
following table sets forth, for the years 2009, 2010 and 2011, the principal components of our net income:



|                                                                    |  | Year ended December 31,     |          
|------------------------------------------------------------------- |  | --------------------------- | ---------
|                                                                    |  | 2009                        |          
|                                                                    |  | (U.S. Dollars in thousands) |          
|Interest income                                                     |  | US$                         | 1,312,925
|Interest
    expense                                                |  |                             | (420,564 
|Net interest income                                                 |  | US$                         | 892,361  
|Provision for loan
    losses                                       |  |                             | (163,392 
|Net interest income
    after Provision                             |  | US$                         | 728,969  
|Noninterest income                                                  |  |                             | 720,631  
|Insurance premiums earned net of claims
    on insurance activities |  |                             | 138,224  
|Other expenses                                                      |  |                             | (957,110 
|Income before translation result and
    income tax                 |  | US$                         | 630,714  
|Translation result (loss) gain                                      |  | US$                         | 12,222   
|Income tax                                                          |  |                             | (138,500 
|Net
    income                                                      |  | US$                         | 504,436  
|Net income attributable to:                                         |  |                             |          
|Equity holders                                                      |  |                             | 469,785  
|Minority interests                                                  |  |                             | 34,651   
|Net
    income                                                      |  | US$                         | 504,436  



Our
net income increased from 2010 to 2011 primarily due to increased interest income of approximately US$366.1 million, net of an
increase in interest expense of US$117.5 million and other expenses of US$144.3 million.



Net
income attributable to our equity holders increased from US$571.3 million in 2010 to US$709.3 million in 2011, which represented
an increase of 24.2% from 2010 to 2011, primarily due to an increase in interest income.



On
the other hand, other expenses increased 13.3% in 2011 to US$1,230.1 million, primarily due to an increase in administrative cost
of US$64.2 million, or 18.8%, and a net loss on our sale of US$24.6 million in financial assets at fair value. Salaries and benefits
increased 4.9% in 2011 to US$595.7 million.



Net
Interest Income



Net
interest income represents the difference between interest income on interest-earning assets and the interest paid on interest-bearing
liabilities. The following table sets forth the components of net interest income:



|                                                                  |  | Year ended December 31,     |          
|----------------------------------------------------------------- |  | --------------------------- | ---------
|                                                                  |  | 2009                        |          
|                                                                  |  | (U.S. Dollars in thousands) |          
|Interest income:                                                  |  |                             |          
|Loans                                                             |  | US$                         | 1,062,046
|Deposits
    in banks                                             |  |                             | 11,047   
|Deposits in Central
    Bank                                      |  |                             | 4,871    
|Investment securities
    and others                              |  |                             | 186,629  
|Dividends                                                         |  |                             | 9,715    
|Gain from derivatives instruments and
    other interest income   |  |                             | 38,617   
|Total interest income                                             |  | US$                         | 1,312,925
|                                                                  |  |                             |          
|Interest expense:                                                 |  |                             |          
|Saving deposits                                                   |  | US$                         | 18,509   
|Time deposits                                                     |  |                             | 206,118  
|Issued bonds                                                      |  |                             | 91,319   
|Borrowing from
    other financial institutions and others        |  |                             | 27,328   
|Demand deposits                                                   |  |                             | 21,414   
|Loss
    from derivatives instruments and other interest expenses |  |                             | 55,876   
|Total
    interest expense                                        |  | US$                         | 420,564  
|Net
    interest income                                           |  | US$                         | 892,361  



99







Our
net interest income increased 23.5% in 2011 compared to 2010, and increased 18.5% in 2010 compared to 2009.



Interest
Income: Interest income increased 24.9% in 2011 compared to 2010, after increasing 12.1% in 2010 compared to 2009. The increase
in 2011 was primarily due to higher average volume in loans and higher interest rates on investment securities. The increase in
loans was primarily due to a higher average volume throughout the year and higher rates. The increase in 2010 was primarily due
to higher average volume in loans and deposits in the Central Bank.



Our
average nominal interest rates earned on loans increased to 9.5% in 2011 from 9.4% in 2010 but remained lower than the 9.9% nominal
interest rate earned in 2009. The average nominal interest rate for foreign currency-denominated loans decreased from 6.5% in
2010 to 4.8% in 2011 due to international interest rates which remain at record lows, despite the upward trend shown in the second
half of the year. Interest rates for Nuevo Sol-denominated loans increased from 13.8% in 2009 to 14.1% in 2010 and further to
16.9% in 2011.



The
average balance of our foreign currency-denominated loan portfolio increased 22.4% to US$9,750.0 million in 2011, as compared
to US$7,967.5 million in 2010. In 2010, the average balance of our foreign currency-denominated loan portfolio increased 17.0%
over the US$6,810.1 million average balance recorded in 2009. The average balance of our Nuevo Sol-denominated loan portfolio
increased 27.3% from US$3,893.5 million in 2009 to US$4,957.7 million in 2010, and by 27.6% to US$6,325.2 million in 2011. The
average balance increase from 2010 to 2011 was in line with the 6.9% GDP growth of the Peruvian economy and was driven by internal
demand that was reflected mainly in the expansion of our Retail Banking portfolio, especially consumer and SME.



In
2011 the expansion of the average balance was comparable with the growth rate registered in 2010, despite the smaller growth rate
of the overall Peruvian economy (8.8% in 2010 vs. 6.9% in 2011). Nevertheless, the average balance in 2010 and 2011 was much higher
than it was in 2009, a year in which the Peruvian economy which grew by only 0.9% because of the effects of the international
economic crisis on Peru’s domestic economic.



Interest
Expense: Interest expense increased in 2011 by 28.4% as compared to 2010 and decreased by 1.5% in 2010 as compared to 2009. The
increase in interest expense during 2011 was principally due to an increase in the cost of funding for local currency deposits
in the first half of 2011, which was associated with higher reference rates during that period (+125 basis points) and the Assets
& Liabilities funding policies.



Average
nominal interest rates paid on foreign currency-denominated deposits decreased from 3.6% in 2009 to 2.5% in 2010, and to 2.3%
in 2011. Average nominal interest paid on Nuevo Sol-denominated deposits decreased from 5.9% in 2009 to 3.0% in 2010 but increase
to 4.9% in 2011. This increase was also a product of the monetary policy discussed above. See “Item 4. Information on the
Company—(B) Business Overview—(8) Competition” and “—(12) Selected Statistical Information.”



Our
average foreign currency-denominated deposits increased 9.3% to US$9,947.6 million in 2011 from US$9,102.5 million in 2010. This
followed an increased 3.1% in 2010 from US$8,829.4 million in 2009. Our average Nuevo Sol-denominated deposits increased 18.6%
in 2011 to US$8,136.3 million from US$6,862.2 million in 2010, and increased 37.37% from US$4,995.4 million in 2009. See “Item
4. Information on the Company—(B) Business Overview—(12) Selected Statistical Information.”





100









Net Interest Margin:
Our net interest margin (net interest income divided by average interest-earning assets) was 4.9% in 2011 and did not change significantly
compared to 2010 and 2009, when the margin was in 4.6% and 4.7 % respectively. See “Item 4. Information on the Company—(B)
Business Overview—(12) Selected Statistical Information.”



Provision for Loan
Losses



We classify all of
our loans and other credits by risk category. We establish our loan loss reserves based on criteria established by IAS 39 (see
“Item 4. Information on the Company—(B) Business Overview—(12) Selected Statistical Information—(iii)
Loan Portfolio—Classification of the Loan Portfolio”). We do not anticipate that the expansion of our loan portfolio
or the development of the activities of our subsidiaries will require a change in our reserve policy.



The following table
sets forth the changes in our reserve for loan losses:



|                                                      |  | Year ended December 31,     |        
|----------------------------------------------------- |  | --------------------------- | -------
|                                                      |  | 2009                        |        
|                                                      |  | (U.S. Dollars in thousands) |        
|Reserves for loan losses at the beginning of the year |  | US$                         | 248,063
|Additional provisions                                 |  |                             | 163,392
|Acquisitions of Edyficar                              |  |                             | 20,905 
|Recoveries of written-offs                            |  |                             | 23,928 
|Writte-offs                                           |  |                             | -87,927
|Monetary correction and Other                         |  |                             | 7,688  
|Reserves for loan losses at the end of the year       |  | US$                         | 376,049



We recorded a US$214.9
million loan loss provision in 2011 and a US$174.7 million provision in 2010. Total write-offs amounted to US$155.4 million in
2011 and US$142.7 million in 2010. Total recoveries of write-offs reached US$41.4 million in 2011 and US$34.6 million in 2010,
increasing 19.8% in 2011. Provision expense in 2011 included US$5.3 million required by BCP Bolivia (compared to US$3.6 million
in 2010). Recoveries of previously charged-off accounts in 2011 amounted to US$41.4 million (compared to US$34.6 million in 2010).



Total reserves, which
amounted to US$558.2 million in 2011, include the allowance for direct and indirect credits of approximately US$519.7 million
and US$38.5 million, respectively.



Non-Interest Income



The following table
reflects the components of our non-interest income:



|                                           |  | Year ended December 31,     |        
|------------------------------------------ |  | --------------------------- | -------
|                                           |  | 2009                        |        
|                                           |  | (U.S. Dollars in thousands) |        
|Fees and commissions from banking services |  | US$                         | 436,819
|Net gains from sales of securities         |  |                             | 120,932
|Net gains on foreign exchange transactions |  |                             | 87,944 
|Other income                               |  |                             | 74,936 
|Total non-interest income                  |  | US$                         | 720,631



101







Our non-interest income,
without including net premiums earned, increased 4.2% to US$838.6 million in 2011, as compared to US$804.5 million in 2010, and
increased 11.6% as compared to US$720.6 million in 2009. The revenue increase in 2011 was primarily due to an increase in fees
and commissions from banking services, net of a decrease in net gain on financial assets designated at fair value and an increase
in net gains on foreign exchange transactions.



Fees and commissions
income from banking services increased 15.8% to US$607.8 million in 2011 from US$524.9 million in 2010, following a 20.2% increase
in 2010 from US$436.8 million in 2009. The increase in fees and commissions income from banking services in 2011 was primarily
due to an increase in account maintenance, banking transfers commissions, credit/debit card services and fund management fees,
while the increase in 2010 was primarily due to an increase in account maintenance, banking transfers commissions, credit/debit
card services and fund management fees.



Net gains from sales
of securities decreased 22.9% to US$61.9 million in 2011 as compared to US$80.3 million in 2010. This followed a decrease of 33.6%
from the US$120.9 million net gains from sales of securities in 2009. The decrease in 2011 was primarily due to the increased
volatility observed in capital markets, which caused the depreciation of stock prices in our investment portfolio. The decrease
in 2010 was primarily due to the increased volatility observed in capital markets, which caused the depreciation of stock prices
in our investment portfolio.



Net gains on foreign
exchange transactions increased 32.9% to US$138.5 million in 2011 as compared to US$104.2 million in 2010, following a increase
of 18.4% from US$87.9 million in 2009. Net gains from foreign exchange transactions are not attributable to proprietary trading
on our part. Higher gains in 2011 compared to 2010 were primarily due to the strong volatility in the exchange rate that occurred
prior to and immediately following the national Peruvian elections that occurred in 2011. This led the higher volumes and improved
the spread in our currency exchange positions.



Other income decreased
68.1% to US$30.4 million in 2011, as compared to US$95.1 million in 2010. Other income increased by 27.0% in 2010 from US$74.9
million in 2009. Other income principally consists of valuation of assets and liabilities designated at fair value, sales of seized
assets, leasing income, recoveries of other accounts receivable and other assets and other income. The decrease in other income
in 2011 was primarily due to a decline of our proprietary position in indexed certificates issued by Citigroup and Calyon to mitigate
the volatility in operating expenses caused by stock appreciation rights granted to our executives. The indexed certificates are
in the form of warrants issued by Citigroup and Calyon and are settled exclusively in cash. These instruments do not qualify for
hedge accounting. Gains on these indexed certificates are reported as other income while losses are reported under operating expenses.
See Note 7(b) to the Consolidated Financial Statements.



Insurance Premiums
and Claims on Insurance Activities



The following table
reflects the premiums earned and claims incurred in connection with our insurance activities:



|                                                                       |  | Year ended December 31,     |         
|---------------------------------------------------------------------- |  | --------------------------- | --------
|                                                                       |  | 2009                        |         
|                                                                       |  | (U.S. Dollars in thousands) |         
|Net premiums earned                                                    |  | US$                         | 424,682 
|Net claims incurred                                                    |  |                             | (59,248 
|Increase in costs for future benefits for life and
    health policies |  |                             | (227,210
|Total net premiums and claims                                          |  | US$                         | 138,224 



102







Net premiums earned
increased 19.6% to US$574.4 million in 2011 from US$480.3 million in 2010. Net premiums for Grupo Pacifico increased 19% to US$590.9
million in 2010 from US$495.7 million in 2009. Total premiums (including premium transfer and reserve adjustments) increased 16%
to US$872.5 million in 2011 from US$751.8 million in 2010.



Total premiums for
general insurance lines, which accounted for 43.4% of total premiums, increased 13.5% in 2011, mainly due to automobile premiums,
which represented 24% of general insurance premiums in 2011 (24% in 2010) and which increased 14.2% from 2010. Other property
and casualty premiums, which represented 53% of the premiums of this business line (53% in 2010), increased 12.9% from 2010; and
medical assistance (which accounted for 20% of this premiums, as in 2010), increased 15.4% from 2010. Premiums from the mandatory
automobile line, SOAT, increased 7% from 2010 to 2011 and represented 3% of total premiums in 2011 (compared to 3% in 2010).



Total premiums for
general insurance lines, which accounted for 44.4% of total premiums, increased 11.6% in 2010, mainly due to automobile premiums,
which represented 24% of general insurance premiums in 2010 (24% in 2009) and which increased 13.1% from 2009. Other property
and casualty premiums, which represented 53% of the premiums of this business line in each of 2010 and 2011 increased 11.8% from
2009; and medical assistance, which accounted for 20% of these premiums, in each of 2010 and 20112010), increased 11.8% from 2009.
We note a 2.9% decrease compared to 2009 in premiums from the mandatory automobile line, SOAT, which represented 3% of total premiums
(4% in 2009).



In the Life Insurance
lines, total direct premiums increased 17.4% in 2011 as compared to 2010, with a market share of 25.9%. This growth exceeded the
average growth of the life insurance industry. The 17.4% increase in total direct premiums was mainly due to a better performance
in our Credit Life (33.5%), Disability and Survivor (25.2%) and Ordinary Life (15.3%) lines. Group Life products increased premiums
by 13.6% from 2010 to 2011, and represented 13.5% of total premiums in 2011. Annuities increased 7.8% in 2011 as compared to 2010
and represented 30.5% of total premiums. All lines of business increased in 2011 as compared to 2010.



Total direct premiums
increased 46.5% in 2010 as compared to 2009, with a market share of 24.4%. This growth is in line with the life insurance industry
average growth. The 46.5% increase in total direct premiums was mainly due to better performance in our Individual Annuity (128.1%),
Disability and Survivor (42.8%) and Credit Life (40.8%) lines. Individual Life products increased premiums by 16.8% with as compared
to 2009, and represented 20.3% of total premiums. Group Life increased 11.0% as compared to 2009 and represented 13.9% of total
premiums. All lines of business increased in 2010 as compared to 2009.



Health business lines
(19.6% of total premiums in 2011) increased by 17.2% in 2011, primarily due to a16.6% increase in regular insurance premiums,
representing 88.1% of health insurance premiums (88.5% in 2010).



Health business lines
(19.5% of total premiums in 2010) increased by 16.9% in 2010, primarily due to a 16.5% increase in Regular insurance premiums,
representing 88.5% of health insurance premiums (88.8% in 2009).



During 2011, net claims
on insurance activities increased by 20% to US$377.7 million from US$315.5 million in 2010, mainly as a consequence of business
growth and an increase of the net loss ratio on Property & Casualty. An increase in competition in the health and life business
lines, particularly through the traditional brokers’ channel also exerted downward pressure on fees.



During 2010, net claims
on insurance activities increased by 10.2% to US$315.5 million from US$286.5 million in 2009, mainly as a consequence of the business
growth.



103







Other Expenses



The following table
reflects the components of our other expenses:



|                                      |  | Year ended December 31,     |        
|------------------------------------- |  | --------------------------- | -------
|                                      |  | 2009                        |        
|                                      |  | (U.S. Dollars in thousands) |        
|Salaries and employee benefits        |  | US$                         | 467,116
|General and administrative            |  |                             | 312,256
|Depreciation and amortization         |  |                             | 71,099 
|Other                                 |  |                             | 106,639
|Total other expenses and merger costs |  | US$                         | 957,110



Personnel expenses
increased 4.9% in 2011 as compared to 2010, after a 21.6% increase in 2010 as compared to 2009. The number of our personnel increased
to 22,276 employees in 2011 from 19,641 in 2010, and decreased from 20,148 in 2009. Considering only BCP, the number of personnel
increased to 18,616 employees in 2011 from 16,148 in 2010, and decreased from 16,748 in 2009. The increase in other expenses during
2011 was due to higher general and administrative expenses and an increase in other expenses.



Our general and administrative
expenses (which include taxes other than income taxes) increased 18.8% in 2011 compared to 2010, after increasing 9.2% compared
to 2009, produced mainly by higher marketing expenses.



Depreciation and Amortization
increased 14.1% to US$93.9 million in 2011 from US$82.3 million in 2010.



Other expenses increased
43.1% to US$135.2 million in 2011, after a decrease of 11.4% in 2010, compared to 2009. This increase was mainly due to the net
loss of US$24.6 million on our sale of financial assets at fair value.



Translation Result



The translation result
reflects exposure to devaluation of net monetary positions in Nuevos Soles. We recognized a US$37.9 million translation gain in
2011, a US$24.1 million translation gain in 2010, and a US$12.2 million translation loss in 2009.



Income Taxes



We are not subject
to income taxes or taxes on capital gains, capital transfers or equity or estate duty under Bermuda law. However, some of our
subsidiaries are subject to income tax and taxes on dividends paid to us, depending on the legislation of the jurisdictions in
which they generate income.



Our Peruvian subsidiaries,
including BCP, are subject to corporate taxation on income under Peruvian tax law. The statutory income tax rate payable in Perú
since 2004 is 30% of taxable income, which includes the result of exposure to inflation. An additional 4.1% withholding tax is
applied on dividends, which we register as income tax based on the liquid amount received from BCP and Grupo Pacífico.



Peruvian tax legislation
is applicable to legal entities established in Perú, and on an individual (not consolidated) basis. Our non-Peruvian subsidiaries
are not subject to taxation in Perú and their assets are not included in the calculation of the Peruvian extraordinary
tax on net assets.



104







ASHC is not subject
to taxation in Panama since its operations are undertaken offshore. The Cayman Islands currently have no income, corporation or
capital gains tax and no estate, duty, inheritance or gift tax. Prior to 1995, there was no corporate income tax in Bolivia.



Tax expense paid by
the subsidiaries increased to US$210.5 million in 2011 from US$187.1 million in 2010, which increased from US$138.5 million in
2009. Income tax growth in these periods reflects increases in our taxable income. Since 1994, we have paid the Peruvian income
tax at the statutory rate. The effective tax rates in 2009, 2010 and 2011 were 21.54%, 23.67%, and 22.53%, respectively.



(3)         Financial
Condition



Total Assets



As of December 31,
2011, Credicorp had total assets of US$30.7 billion, increasing 8.2% compared to total assets of US$28.4 billion as of December
31, 2010. In 2010, cash and due from banks decreased 35.6% due to lower amounts maintained with Peru’s central bank, the
Banco Central de la Reserva del Perú (the BCRP or the Central Bank). Investments increased 54.3% due to a increase in BCRP
certificates of deposit and an increase in loans, net of provisions, which rose 21.2% due to corporate banking growth.



As of December 31,
2011, our total loans were US$17,441.9 million, which represented 56.8% of total assets. Loans, net of reserves for loan losses,
were US$16,922.2 million. As of December 31, 2010, our total loans were US$14,375.4 million, which represented 49.1% of total
assets, and net of reserves for loan losses, loans were US$13,959.7 million. From December 31, 2010 to December 31, 2011 our total
loans increased by 21.3%, and net of loan loss reserves increased by 21.2%.



Our total deposits
with the Central Bank decreased to US$3,784.5 million as of December 31, 2011 from US$6,308.0 million as of December 31, 2010.
Our securities holdings (which include marketable securities and investments) increased 54.3% to US$5,991.2 million as of December
31, 2011 from US$3,883.8 million as of December 31, 2010. The securities portfolio increase in 2011 was primarily due to higher
investments in BCRP certificates of deposits, which were replaced by time deposits in BCRP that explain the significant increase
aforementioned.



Total Liabilities



As of December 31,
2011, we had total liabilities of US$27.3 billion, a 7.1% increase from US$25.5 billion as of December 31, 2010; and we had total
deposits of US$18.7 billion, a 5% increase from US$17.8 billion on December 31, 2010.



We have structured
our funding strategy around maintaining a diversified deposit base. As of December 31, 2011, on an unconsolidated basis, we had
41.4% of total savings deposits in the Peruvian banking system, 39.9% of demand deposits, 27.4% of time deposits and 34% of total
deposits, the highest of any Peruvian bank in all three types of deposits, according to the SBS. An important characteristic of
our deposit base is that, as of December 31, 2011, it included 56.1% of the entire Peruvian banking system’s CTS deposits,
increasing from 55.9% as of December 31, 2010, and 50.7% as of December 31, 2009, according to SBS statistics. We believe that
we have traditionally attracted a high percentage of the savings and CTS deposit market because of our reputation as a sound institution,
an extensive branch network and the quality of our service. The decrease in deposit market share is due to the fact that new financial
institutions have taken a small market share from BCP, due to the attractive interest rates they offer.



105







(B)         Liquidity
and Capital Resources



Regulatory Capital
and Capital Adequacy Ratios



|                                                                                               |  | As of December 31,                              |           
|---------------------------------------------------------------------------------------------- |  | ----------------------------------------------- | ----------
|                                                                                               |  | 2009                                            |           
|                                                                                               |  | (U.S. Dollars in thousands, except percentages) |           
|Capital stock                                                                                  |  | US$                                             | 528,011   
|Legal and other reserves                                                                       |  |                                                 | 1,053,494 
|Capital stock, reserves and retained earnings of minority interest                             |  |                                                 | 104,052   
|Accepted provisions for loan losses                                                            |  |                                                 | 114,104   
|Subordinated debt                                                                              |  |                                                 | 683,222   
|Total                                                                                          |  |                                                 | 2,482,883 
|Less: investment in multilateral organizations, banks and insurance companies
    and goodwill |  |                                                 | (261,749  
|Total Regulatory Capital (1)                                                                   |  |                                                 | 2,221,134 
|                                                                                               |  |                                                 |           
|Financial Entities Capital Ratio                                                               |  |                                                 |           
|Regulatory Capital attributable to Financial Entities (1)                                      |  |                                                 | 2,033,401 
|Risk-Weighted Assets From Financial Entities (3)                                               |  |                                                 | 14,200,280
|Capital Ratio for Financial Entities (1) / (3)                                                 |  |                                                 | 14.32     
|                                                                                               |  |                                                 |           
|Minimum Regulatory Capital Required (MRCR)(2)                                                  |  |                                                 |           
|MRCR for Financial Entities (3)                                                                |  |                                                 | 1,266,502 
|MRCR for Insurance Entities (3)                                                                |  |                                                 | 149,808   
|MRCR for Other Entities (3)                                                                    |  |                                                 | 144,494   
|Total Minimum Regulatory Capital Required                                                      |  | US$                                             | 1,560,804 
|Regulatory capital as percentage of Minimum Regulatory Capital Required                        |  |                                                 | 142.31    



(1)         Total
Regulatory Capital and Financial Entities Regulatory Capital is prepared under the guidelines of the BIS I Accord (by the Basel
Committee) as adopted by the SBS.

(2)         The
Minimum Regulatory Capital Required, or MRCR, is prepared under the guidelines of the BIS I Accord (by the Basel Committee) as
adopted by the SBS, and must not exceed from the Total Regulatory Capital calculated. The consolidated MRCR is calculated by the
addition of the MRCR of each one of the entities.

(3)         Peruvian
financial entities (BCP, Credileasing and Solución) have a MRCR of 10.0% of the Risk-Weighted Assets (or RWA). For ASHC
(Cayman Islands), the MRCR is 12% of the RWA. For BCP Bolivia, the MRCR is 10% of the RWA. For the insurance companies, MRCR is
calculated on the basis of the solvency margin, the guarantee funds and the credit risk. Other entities, with no MRCR, must be
considered by the sum of the capital, reserves and retained earnings.



Liquidity Risk



We manage our assets
and liabilities to ensure that we have sufficient liquidity to meet our present and future financial obligations and to be able
to take advantage of appropriate business opportunities as they arise. Liquidity risk represents the potential for loss as a result
of limitations on our ability to adjust future cash flows to meet the needs of depositors and borrowers and to fund operations
on a timely and cost-effective basis. Financial obligations arise from withdrawals of deposits, repayment on maturity of purchased
funds, extensions of loans or other forms of credit, and working capital needs.



The growth of our
deposit base over the years has enabled us to significantly increase our lending activity. BCP is subject to SBS Resolution No.
472-2001, enacted in June 2001, which made its market risk area responsible for liquidity management, and by which minimum liquidity
ratios were established. The ratio of liquid assets as a percentage of short-term liabilities, as strictly defined by the SBS,
must exceed 8% for Nuevos Soles-based transactions, and 20% for foreign exchange-based transactions. BCP’s average daily
ratios during the month of December 2011 were 45.89% and 43.78% for Nuevos Soles and foreign exchange-based transactions, respectively,
demonstrating our continuing excess liquidity. We have never defaulted on any of our debt or been forced to reschedule any of
our obligations. Even during the early 1980s, when the government of Peru and many Peruvian companies and banks were forced to
restructure their debt as a result of the Latin American debt crisis and government restrictions, BCP and Grupo Pacífico
complied with all of their payment obligations.



106







The capability of
replacing interest-bearing deposits at their maturity is a key factor in determining liquidity requirements, as well as the exposure
to interest and exchange rate risks. Our principal source of funding is customer deposits with BCP’s retail banking group
and ASHC’s private banking group, and premiums and amounts earned on invested assets at Grupo Pacífico. We believe
that funds from our deposit-taking operations generally will continue to meet our liquidity needs for the foreseeable future.



BCP’s retail
banking group has developed a diversified and stable deposit base and its private banking group has developed a stable deposit
base that, in each case, provides us with a low-cost source of funding. This deposit base has traditionally been one of our greatest
strengths. The deposit gathering strategy has focused on products considered as BCP’s core deposits: demand deposits, savings,
time deposits and CTS deposits. Other sources of funds and liquidity, which are mostly short- and long-term borrowings from correspondent
banks and other financial institutions, issued bonds, and subordinated debt, are of a considerably lower significance compared
to our core deposits. See Notes 12 and 13 to the Consolidated Financial Statements.



The following table
presents our core deposits, other deposits and other sources of funds:



|                                                            |  | At December 31,                                 |           
|----------------------------------------------------------- |  | ----------------------------------------------- | ----------
|                                                            |  | 2009                                            |           
|                                                            |  | (U.S. Dollars in thousands, except percentages) |           
|Core Deposits:                                              |  |                                                 |           
|Demand deposits                                             |  | US$                                             | 4,556,746 
|Savings deposits                                            |  |                                                 | 3,539,665 
|Severance indemnity deposits                                |  |                                                 | 1,069,506 
|Total core deposits                                         |  | US$                                             | 9,165,917 
|                                                            |  |                                                 |           
|Other Deposits:                                             |  |                                                 |           
|Time deposits                                               |  |                                                 | 4,751,861 
|Bank certificates                                           |  |                                                 | 120,932   
|Total deposits                                              |  | US$                                             | 14,038,710
|                                                            |  |                                                 |           
|Due to banks and correspondents                             |  | US$                                             | 1,162,319 
|                                                            |  |                                                 |           
|Issued bonds                                                |  |                                                 | 2,369,483 
|                                                            |  |                                                 |           
|Total sources of funds                                      |  | US$                                             | 17,570,512
|Core deposits as a percent of total deposits                |  |                                                 | 65.3      
|Core deposits as a percent of total sources of liquid funds |  |                                                 | 52.2      



BCP is required to
keep deposits with the Central Bank as legal reserves, determined as a percentage of the deposits and other liabilities owed to
its clients. The requirement is currently approximately 13.0% of Nuevos Soles-denominated deposits and approximately 35.7% for
the U.S. Dollar-denominated deposits. See “Item 4. Information on the Company—(B) Business Overview—(11) Supervision
and Regulation—(ii) BCP—Central Bank Reserve Requirements.” Legal reserves are meant to ensure the availability
of liquid funds to cover withdrawals of deposits. Additionally, we have significant investments of excess liquid funds in short-term
Central Bank certificates of deposits.



The following table
presents our deposits at the Central Bank and our investments in Central Bank certificates:



|                                                                   |  | At December 31,                                 |          
|------------------------------------------------------------------ |  | ----------------------------------------------- | ---------
|                                                                   |  | 2009                                            |          
|                                                                   |  | (U.S. Dollars in thousands, except percentages) |          
|Funds at Central Bank                                              |  |                                                 |          
|Deposits                                                           |  | US$                                             | 2,107,635
|Certificates of deposits                                           |  |                                                 | 1,548,715
|Total funds at Central Bank                                        |  | US$                                             | 3,656,350
|Total funds at Central Bank of Perú as a percent of total deposits |  |                                                 | 26.0     





107







BCP at times has accessed
Peru’s short-term interbank deposit market, although it is generally a lender in this market. The Central Bank’s discount
window, which makes short-term loans to banks at premium rates, is also available as a short-term funding source, but has been
used infrequently by BCP. ASHC also has the ability to borrow from correspondent banks on an overnight basis at rates tied to
the federal funds rate as well as funding lines from international financial institutions.



On December 31, 2011,
we had uncommitted credit lines with various banks, including long-term facilities that are mainly used for project financing,
of which no significant amount was drawn down. We have also received long term funding from Cofide (Corporación Financiera
de Desarrollo S.A., a Peruvian government-owned development bank), Corporación Andina de Fomento (or CAF), syndicated loans,
and other international lenders. The transactions relating to these credit lines include import and export transactions and average
annual rates (including Libor) vary from 0.69% to 10.5%. As of December 31, 2011, we maintain US$2,117.0 million in such credit
lines, secured by the collection of BCP (including its foreign branches) future inflows from electronic messages sent through
the Society for Worldwide Interbank Financial Telecommunications (SWIFT) 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. These funds have maturities
of up to seven years. See Notes 13(a) and (b) to the Consolidated Financial Statements. As of December 31, 2011 borrowed funds
due to banks and correspondents amounted to US$2,060.0 million as compared to US$2,240.3 million in 2010 and US$1,167.4 million
in 2009.



In addition, mortgage
loans may be funded by mortgage funding notes and, since 2001, mortgage bonds that are sold by BCP in the market. Mortgage funding
notes are instruments sold by BCP with payment terms that are matched to the related mortgage loans, thereby reducing BCP’s
exposure to interest rate fluctuations and inflation. Mortgage bonds are mainly U.S. Dollar-denominated and have been issued with
ten-year terms, with collateral established by real estate acquired through funded home mortgage loans. As of December 31, 2011,
BCP had US$0.5 million of outstanding mortgage bonds and notes (US$5.0 million in 2010 and US$10.5 million in 2009). A source
of funds specific to leasing operations are leasing bonds issued by lease financing companies, the terms of which are specified
in the Peruvian leasing regulations. As of December 31, 2011, BCP had US$37.1 million of outstanding leasing bonds (US$134.4 million
in 2010 and US$188.3 million in 2009). These bonds have maturities of up to seven years. See Note 15 to the Consolidated Financial
Statements for a detailed breakdown of our issued bonds.



The following table
presents our issued bonds:



|                   |  | Years ended December 31,   |      
|------------------ |  | -------------------------- | -----
|                   |  | 2009                       |      
|                   |  | (U.S. Dollars in millions) |      
|Issued bonds       |  |                            |      
|Corporate bonds    |  | US$                        | 192.3
|Leasing bonds      |  |                            | 0.0  
|Subordinated bonds |  |                            | 113.8
|Subordinated debt  |  |                            | 250.0
|Total issuance     |  | US$                        | 556.1



In October 2007, BCP,
through its Panama branch, issued on the international market subordinated notes in the aggregate amount of US$161.3 million due
2022. These notes accrue at a fixed annual interest rate of 7.17%, for the first 10 years with interest payments every six months.
After the first 10 years, the interest rate will change to a variable interest rate established by the market interest rate of
the Peruvian government-issued sovereign bonds maturing in 2037 plus 150 basis points, with quarterly and semi-annual payments.
At the end of the first 10 years, the Bank may redeem 100% of the debt without penalty. These subordinated debt notes include
certain financial and operating covenants. In our management’s opinion, BCP is not in violation of any of these covenants
as of the date of the consolidated balance sheet.



108







In November 2009,
BCP, through its Panama branch issued Junior Subordinated Notes for US$250.0 million in the international market with principal
maturity in 2069. This debt accrues a fixed annual interest rate of 9.75 percent, for the first 10 years, with semiannual payments.
After the first ten (10) years, in November 2019, the interest rate will become variable, at three month Libor plus 816.7 basis
points, with quarterly payments. At that date and on any interest payment date, BCP can redeem 100 percent of the notes, without
penalties and after fulfilling certain requirements. Interest payments are non-cumulative such that, if an interest payment is
not made in full or cancelled as set forth due to BCP’s rights to cancel interest payments, a mandatory prohibition established
by SBS, or if it is determined that BCP is in non-compliance with applicable minimum regulatory capital, then the unpaid interest
will not accrue or be due and payable at any time and shall not constitute an acceleration event. In those cases, BCP will not,
and will not cause its majority owned subsidiaries to declare, pay or distribute a dividend for a period of time established since
the interest payments are not cancelled. This debt does not have collateral and qualifies as Tier 1 capital for SBS regulations.



In November 2009,
BCP Emisiones Latam 1 S.A., a subsidiary of Credicorp, issued corporate bonds (Series A) for 2.7 million “Chilean Unidades
de Fomento - UF”. Credicorp and BCP Emisiones Latam 1 S.A. 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. This debt, subject
to foreign exchange risk, has been hedged through cross-currency swaps; as a result, these bonds were economically converted to
U.S. Dollars.



In September 2010
and March 2011, BCP, through its Panama branch, issued senior bonds for US$800.0 million and US$700.0 million, respectively, in
the international market with principal maturity on 2020 and 2016, respectively. These debts accrue at a fixed annual interest
rate of 5.38% and 4.75%, respectively, with semiannual interest payments.



BCP’s issuances
in 2011 are described above See “Item 4. Information on the Company—(B) Business Overview—(1) Introduction –
Review of 2011- Banking segment.”



In July and August
2011, Edyficar issued negotiable certificates of deposits for S/.40.0 million and two of S/.30.0 million each with fixed annual
interest rates of 5.41%, 5.27% and 5.20%, respectively, with maturities between July and August 2012.



In November 2011,
Grupo Pacífico issued subordinated bonds for US$60.0 million. This debt accrues a fixed annual interest rate of 6.97% with
principal maturity on 2026. These bonds were issued in order to obtain cash for maturities in November 2026.



The principal sources
of funds for Grupo Pacífico’s insurance operations are premiums and amounts earned on invested assets. The major
uses of these funds are the payment of policyholder claims, benefits and related expenses, reinsurance costs, commissions and
other operating costs. In general, Grupo Pacífico’s insurance operations generate substantial cash flow because most
premiums are received in advance of the time when claim payments are required. Positive operating cash flows, along with that
portion of the investment portfolio that is held in cash and highly liquid securities, historically have met the liquidity requirements
of Grupo Pacífico’s insurance operations.



(C)         Research
and Development, Patents and Licenses, Etc.



Not
applicable.



(D)         Trend
Information



109







We expect that 2012
will show a positive economic trend; however, the international environment still suggests some uncertainty. In particular, we
expect that financial income will increase, mainly as a result of our prioritiziation of retail operations with individuals and
small companies. In addition, credit risk is expected to remain low despite planned positive loan evolution and higher provision
due to higher volume of loan portfolio. Furthermore, we plan to invest in the expansion of our distribution channels network by
opening new branches.



Other important factors
to consider are the pressure on consumer protection regulation and elections in local, regional and central government authorities,
which could impact our business in Peru.



In Bolivia, we expect
that BCP Bolivia will maintain its profitability, although the political and economic environment, which involves a high level
of uncertainty, is an important factor in this expectation.



We expect that in
2012, ASB will maintain its low-risk investment strategy and overall good performance as that achieved in 2010. We expect continued
growth of the assets under management, given the high quality service we offer.



In our insurance business,
we expect to raise the profitability of each retail product sold in branches. The insurance business continues to grow and is
supported by the continued decrease in loss ratio experienced in the industry. However, as with our banking business, there is
pressure on consumer protection regulation and the elections in local, regional and central government authorities could impact
our business in Peru.



Please see “Item
3. Key Information—(D) Risk Factors” and the cautionary statement regarding forward looking information.



(E)         Off-Balance
Sheet Arrangements



We record various
contractual obligations as liabilities in our financial statements. We do not recognize other contractual arrangements, such as
contingent credits contracts, as liabilities in our financial statements. These other contractual arrangements are required to
be registered in off-balance sheet accounts. We enter into these off-balance sheet arrangements in the ordinary course of business
in order to provide support to our clients and hedge some risks in our balance sheet and use guarantees, letters of credit, derivatives
and swaps.



The following table
reflects our off-balance sheet arrangements as of December 31, 2009, 2010 and 2011:



|                                              |  | Year ended December 31,     |          
|--------------------------------------------- |  | --------------------------- | ---------
|                                              |  | 2009                        |          
|                                              |  | (U.S. Dollars in thousands) |          
|Contingent Credits                            |  |                             |          
|Guarantees and stand by letters               |  | US$                         | 2,108,761
|Import and export letters of credit           |  |                             | 419,374  
|Sub Total                                     |  |                             | 2,528,135
|                                              |  |                             |          
|Responsibilities under credit line agreements |  |                             | 1,557,674
|Forward and options, net                      |  |                             | 2,638,755
|Swap contracts (notional amount)              |  |                             | 3,113,831
|                                              |  |                             |          
|Total                                         |  | US$                         | 9,838,395



110







In the normal course
of its business, our banking subsidiaries are party to transactions with off-balance sheet risk. These transactions expose them
to additional credit risks than those amounts recognized in the consolidated balance sheets.



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 amount
specified in the related contracts. We apply the same credit policies in making commitments and conditional obligations as we
do for on-balance sheet instruments (see Note 6(a) to the Consolidated Financial Statements), including the requirement to obtain
collateral when necessary. The 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.



Credicorp has currency-forwards
derivatives. Currency-forwards are commitments to buy or sell currency at a future date at a contracted price. Risk arises from
the possibility that the counterparty to the transaction will not perform as agreed and from the changes in the prices of the
underlying currencies. As of December 31, 2011 and 2010, the nominal amounts for forward currency purchase and sale agreements
were approximately US$3,473.3 million and US$2,628.2 million, respectively, which in general have maturities of less than a year.



These agreements are
entered into to satisfy client requirements and are recognized in the consolidated financial statements at their fair value. As
of December 31, 2011, the forward contracts net position is an overbuy of U.S. Dollars of approximately US$312.7 million (overbuy
of approximately US$960.2 million as of December 31, 2010).



Interest rate and
currency swaps are derivatives contracts, where counterparties exchange variable interest rates for fixed interest rates or different
currencies, respectively, in the terms and conditions established at the contract inception. The risk arises each time the projected
level of the variable rate during the term of the contract is higher than the swap rate, as well as from non-compliance with contractual
terms by one of the parties. As of December 31, 2011, the notional amount of open interest rate and currency swap contracts was
approximately US$2,252.1 million (approximately US$2,217.1 million as of December 31, 2010).



Cross-currency swap
derivative contracts involve the exchange of interest payments based on two different currency principal balances and referenced
interest rates. They generally also include the exchange of principal amounts at the start and/or end of the contract. As of December
31, 2011, the notional amount of cross-currency swap contracts were approximately US$197.7 million (approximately US$252.9 million
as of December 31, 2010).



As of December 31,
2011, the fair values of the asset and liability forward-exchange contracts, options and interest rate and cross-currency swaps
amounted approximately to US$82.5 million and US$145.3 million, respectively (approximately US$84.9 million and US$136.7 million
as of December 31, 2010) and are included under the caption “Other assets and other liabilities” of the consolidated
balance sheets, respectively. See Note 11(b) to the Consolidated Financial Statements.



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



(F)         Tabular
Disclosure of Contractual Obligations



Credicorp enters into
various contractual obligations that may require future cash payments. The following table summarizes our contractual obligations
by remaining maturity as of December 31, 2011. See “Item 4. Information on the Company—(B) Business Overview—(1)
Introduction – Review of 2011.”





111







|                            |  | Total at                    |           |  | Payments due by period |    
|--------------------------- |  | --------------------------- | --------- |  | ---------------------- | ---
|                            |  | December 31, 2011           |           |  | Less than
    1 year   |    
|                            |  | (U.S. Dollars in thousands) |          
|Borrowed funds              |  | US$                         | 1,672,348 |  |                        | US$
|Promotional credit lines    |  |                             | 241,836   |  |                        |    
|Interbank funds             |  |                             | 138,671   |  |                        |    
|Time deposits               |  |                             | 5,039,541 |  |                        |    
|Operating lease obligations |  |                             | 105,300   |  |                        |    
|Total                       |  | US$                         | 7,197,696 |  |                        | US$



Borrowed funds includes
two syndicated loans and various bilateral loans, primarily with foreign financial institutions.



One syndicated loan,
in the amount of US$150.0 million as of December 31, 2011, matures in March 2014, with semiannual principal and interest payments
of six month Libor plus 1.75 percent. The second syndicated loan, with an outstanding principal amount of US$350.0 million as
of December 31, 2011, matures in October 2013. This loan has a variable interest rate of six month Libor plus 1.75 percent during
2011. However, we have hedged both syndicated loan through interest rate swaps (IRS) for the same notional amount and maturities;
as a result, this loan was economically converted to fixed rate. See Note 11(b) to the Consolidated Financial Statements.



Loans obtained include
the obligation to comply with certain covenants which, in our management’s opinion, are being complied with at the consolidated
balance sheet dates.



Some international
funds and promotional credit lines include standard covenants related to the compliance with financial ratios, use of funds and
other administrative matters. In our management’s opinion, these covenants do not limit our operations and we have fully
complied with them as of the consolidated balance sheet dates.



Our deposits and obligations
are widely diversified with no significant concentrations.



ITEM 6.          DIRECTORS,
SENIOR MANAGEMENT AND EMPLOYEES



(A)         Directors
and Senior Management



Board of Directors



The following table
sets forth our current directors:



|Name                     |  | Position      |  | Years served as a Director(1)
|------------------------ |  | ------------- |  | -----------------------------
|Dionisio Romero Paoletti |  | Chairman      |  | 9                            
|Raimundo Morales         |  | Vice Chairman |  | 4                            
|Fernando Fort Marie      |  | Director      |  | 30                           
|Reynaldo Llosa Barber    |  | Director      |  | 29                           
|Juan Carlos Verme        |  | Director      |  | 22                           
|Luis Enrique Yarur       |  | Director      |  | 16                           
|Felipe Ortiz de Zevallos |  | Director      |  | 7                            
|Germán Suárez            |  | Director      |  | 7                            

(1)         Of
Credicorp, our subsidiaries and their predecessors as of December 31, 2011.



112







Dionisio Romero
Paoletti is the Chairman of the Board of Directors and Chief Executive Officer. He is an economist from Brown University with
a Master’s degree in Business Administration from Stanford University. Mr. Romero P. has served as a board member of Banco
de Crédito since 2003 and was appointed Vice Chairman in 2008. Mr. Romero P. has also been the Chairman of Alicorp S.A.A.,
Compañia Universal Textil S.A., Pacífico Peruano Suiza Cía. De Seguros y Reaseguros, Pacífico Vida
Cia. De Seguros y Reaseguros, Ransa Comercial S.A., Industrias del Espino S.A., Palmas del Espino S.A. and Caña Brava,
among others. Also, he has been Vice Chairman of the Board of Inversiones Centenario and Director of Cementos Pacasmayo S.A.A.
since March 2005. Mr. Romero P. was appointed as Chairman of our Board and of the Board of Banco de Crédito in March 2009.
He is the son of Mr. Dionisio Romero Seminario.



Raimundo Moraleshas been the Vice Chairman of the Board of Directors since April 2008. Prior to being elected to the Board of Directors, he
served as our Chief Operating Officer and General Manager of BCP, having joined BCP in 1980. Previously, Mr. Morales held various
positions during his ten years at Wells Fargo Bank in its San Francisco, São Paulo, Caracas, Miami and Buenos Aires offices.
His last position was Vice President for the Southern Region of Wells Fargo. From 1980 to 1987, Mr. Morales was Executive Vice
President in charge of BCP’s Wholesale Banking Group. From 1987 to 1990, he was the General Manager of ASB in Miami. He
rejoined BCP as the General Manager in 1990. Mr. Morales received his Master’s degree in Finance from the Wharton School
of Business in the United States.



Fernando Fort Marieis a lawyer and partner at the law firm of Fort Bertorini Godoy & Pollari Abogados S.A. Mr. Fort served as a director
of Banco de Crédito del Perú from 1979 to 1987 and from March 1990 to the present. Since March 2009, he has served
on our Board of Directors and on the board of directors of ASB, BCP Bolivia and BCP’s subsidiaries. Mr. Fort also serves
as chairman of Hermes Transportes Blindados S.A. and a director on the Board of Inversiones Centenario S.A.A., Motores Diesel
Andinos S.A. (MODASA) and Edelnor S.A.A.



Reynaldo Llosa
Barber is a business manager and since August 1995 has been a director on our board of directors and on the boards of ASB,
BCP Bolivia, Pacifico Peruano Suiza and BCP’s subsidiaries. He has also been a director of BCP from 1980 to October 1987
and from March 1990 to the present. Mr. Llosa is the main partner and general manager of F.N. Jones S.R. Ltda. and serves as Chairman
of the board at Edelnor S.A.A and as a board member of Edegel S.A.A.



Juan Carlos Vermeis a businessman and has served on the Board of Directors since August 1995. He has served on the board directors of BCP since
March 1990 and is also on the board of directors of ASB and BCP Bolivia. Mr. Verme is Chairman of Inversiones Centenario and he
also serves as member of the Board of some BCP’s subsidiaries (Creditítulos S.A. and Credifondo S.A.C.,) and other
Peruvian companies such as Celima, Corcesa, Piscifactorías de los Andes and Medlab. He is a director of the Asamblea General
de Asociados del Patronato del Museo de Arte de Lima (the General Assembly of Patron Members of the Lima Art Museum) and a trustee
of American Patrons of Tate where he also participates as a member of the Latin American Acquisitions Committee of Tate Modern.



Luis Enrique Yaruris a businessman with an undergraduate degree in law and graduate degrees in economics and management. He has served on the
Board of Directors since October 2002 as well as the board of directors of BCP since February 1995. Mr. Yarur is Chairman of the
Board of Empresas Juan Yarur S. A. C., Banco de Crédito e Inversiones of Chile, Chairman of Empresas Jordan S.A. and Vice-Chairman
of Empresas Lourdes S.A. He is Vice-President of the Asociación de Bancos e Instituciones Financieras A. G. and director
of the Bolsa de Comercio de Santiago, BCI Seguros Generales S.A and BCI Seguros de Vida S.A.



Felipe Ortiz de
Zevallos is an industrial engineer with a Master’s degree in Management Science from the University of Rochester and
a degree in Management from Harvard Business School. Mr. Ortiz de Zevallos has served on the Board of Directors since March 2005.
He also serves as a director on the boards of BCP, Grupo Apoyo (where he is the Chairman), Compañía de Minas Buenaventura
S.A., Sociedad Minera el Brocal S.A.A. (where he is the chairman) and AC Capitales SAFI. From September 2006 until March 2009,
Felipe Ortiz de Zevallos was Peru’s Ambassador to the United States. Prior to becoming Peru’s Ambassador to the United
States, Mr. Zevallos served as the President of Universidad del Pacífico in Lima (elected for the period 2004-2009).



Germán Suárezis an economist with a Master’s degree in Economics from Columbia University. Mr. Suárez was elected to the Board
of Directors in March 2005. Mr. Suárez was President and Chairman of the Board of Banco Central de Reserva del Perú
from 1992 to 2001, and serves as a director on the boards of BCP and Compañía de Minas Buenaventura S.A.



113







Dawna L. Fergusonwas Credicorp’s Secretary until February 2012, when the Board of Directors decided to appoint Codan Services as Corporate
Secretary. Mr. Mario Ferrari is the Deputy General Secretary.



Executive Officers



Our management consists
of certain principal executive officers of BCP, ASHC and PPS. Credicorp believes that a unified financial group with a coordinated
strategy is best able to take advantage of growth in the Peruvian economy and achieve synergies from cross-selling financial services
and products (e.g., through BCP’s extensive branch network). Pursuant to Credicorp’s bye-laws, the Board of Directors
has the power to delegate its power over day-to-day management to one or more directors or officers. The following table sets
forth the name, position and term of service for each of our executive officers.



|Name               |  | Position                |  | Years Served as
    an Officer(1)
|------------------ |  | ----------------------- |  | ---------------------------------
|Dionisio Romero P. |  | Chief Executive Officer |  | 3                                
|Walter Bayly       |  | General Manager         |  | 19                               
|Alvaro Correa      |  | Chief Financial Officer |  | 15                               
|David Saettone     |  | Chief Insurance Officer |  | 15                               



(1)         Of
Credicorp, our subsidiaries and their predecessors as of December 31, 2011.



Walter Bayly
is the General Manager of Credicorp and BCP, positions he has held since April 2008. Previously, he was Chief Financial Officer
and the Executive Vice President of Planning and Finance of BCP and prior to that time he held various other management positions
within BCP, which included managing the Wholesale Banking Group as well as other areas of BCP. Mr. Bayly joined BCP in 1993, after
three years at Casa Bolsa México where he was Partner and Managing Director in Corporate Finance. Prior to that, he was
with Citibank in Lima, New York, México, and Caracas for a period of ten years, where he worked primarily in the corporate
finance and loan syndication groups. Mr. Bayly received a Bachelor’s degree in Business Administration from Universidad
del Pacífico in Lima, Peru, and a Master’s degree in Management from Arthur D. Little Management in Cambridge, Massachusetts.



Alvaro Correa
is the Chief Financial Officer and the Executive Vice President of Planning and Finance of BCP, positions he has held since April
2008. He also oversees Credicorp’s international subsidiaries and branches. Mr. Correa is an industrial engineer from the
Pontificia Universidad Católica del Perú. He also holds a Master’s degree in Business Administration from
Harvard Business School. Mr Correa also has Series 7 and Series 24 certifications in the United States. In 1997, he joined BCP
as Retail Risk Manager, later serving as IT Solution Manager under the Systems and Organization Division. From 2006 to 2008, Mr.
Correa served as General Manager of ASB, Credicorp Securities and BCP’s Miami agency. He currently is Chairman and CEO of
Solucion-EAH and Director of Edyficar and Prima AFP.



David Saettoneis Chief Insurance Officer and the Chief Executive Officer of Grupo Pacífico. Mr. Saettone graduated with honors (BAH)
from Queen’s University at Kingston, Canada. He has a Master of Economics and Finance (MA) from Princeton University. Mr.
Saettone has been certified as a Chartered Insurer and Associate by the Chartered Insurance Institute (ACII), UK; a Chartered
Property Casualty Underwriter (CPCU) by the Institute for CPCU, in the United States; Chartered Life Underwriter (CLU) by the
American College, in the United States; Associate in Risk Management (ARM, Associate in Underwriting (AU), Associate in Reinsurance
(ARe), Associate in Marine Insurance Management (AMIM), Associate in Claims (AIC) and Associate in Insurance Accounting &
Finance (AIAF) from the Insurance Institute of America, in the United States. He obtained a Certificate in Information Technology
for Insurance Professionals (CITIP) from the Chartered Insurance Institute and the British Computer Society of the United Kingdom.
Mr. Saettone has worked as General Manager of Banco de Credito de Bolivia, Head of the Cabinet of Advisors of the Peruvian Ministry
of Economy and Finance, Manager of Corporate Finance at BCP and General Manager of Credibolsa SAB S.A., a subsidiary of BCP. In
academia, Mr. Saettone was a professor of International Economics and Capital Markets at the University of Lima and taught Probability
and Statistics at the Woodrow Wilson School of Public Administration of Princeton University. He was director of Cofide (Corporación
Financiera de Desarrollo S.A., a Peruvian government-owned development bank) and the Fondo Consolidado de Reservas (Consolidated
Reserves Fund). Mr. Saettone is currently General Manager of Pacifico Insurance, Chairman of the Board of Pacifico Salud, Director
of Pacifico Vida and Director of Financiera Edyficar.



114







(B)         Compensation



The aggregate amount
of directors compensation and executive officers salaries (including our executive officers listed above and four additional executive
officers of BCP) for 2011 was US$8.9 million. We do not disclose to our shareholders or otherwise make available to the public
information as to the compensation of its individual directors or executive officers.



As indicated in Note
3(w) to the Consolidated Financial Statements, Credicorp has granted stock appreciation rights (SARs) to certain key executives
and employees who have at least one year service to Credicorp or any of our subsidiaries. At the grant date and in each one of
the subsequent three years, the granted SARs may be exercised up to 25% of all SARs granted in the plan. The SARs expire after
eight years. The number of outstanding SARs as of December 31, 2011 and their corresponding exercise prices are as follows:



|Year Granted |  | Number of Outstanding SARs granted |  | Exercise price in US$ |      
|------------ |  | ---------------------------------- |  | --------------------- | -----
|2004         |  | 40,000                             |  |                       | 8.39 
|2005         |  | 40,000                             |  |                       | 13.40
|2006         |  | 53,000                             |  |                       | 22.72
|2007         |  | 45,007                             |  |                       | 22.72
|2008         |  | 65,216                             |  |                       | 22.72





Key executives’ compensation also includes share based
payments. 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 the same years approximately US$25.5 million, US$14.8
million and US$5.0 million, SARs were exercised from the SARs that vested in the trailing 12-month period through April of each
year. 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 payment of the related income tax on behalf of its employees, which corresponds to 30 percent of the benefit
is assumed by Credicorp and amounted to US$9.3 million, US$5.6 million and US$1.4 million for the years 2011, 2010 and 2009 respectively.
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 balance sheet caption “Other liabilities
– Payroll taxes, salaries and other personnel expenses.” See Note 11(a) to the Consolidated Financial Statements.
The expenses are recorded in the consolidated income statement caption “Personnel expenses.”



During 2009, 2010
and 2011, Credicorp signed several contracts with Citigroup and Calyon Financial by which it acquired certificates linked to the
yield of our shares. See Note 7(b) to the Consolidated Financial Statements.



The following table
sets forth the movement of the SARs for the periods indicated:



|                                  |  | 2010                 |           |   | 2011        | 
|--------------------------------- |  | -------------------- | --------- | - | ----------- | 
|                                  |  | Outstanding
    SARs |           |   | Vested SARs | 
|                                  |  | Number               |           |   | Number      | 
|                                  |  |                      |           |   |             | 
|Balance as of January 1           |  |                      | 1,147,463 |   |             | 
|Granted and vested                |  |                      | -         |   |             | 
|Exercised                         |  |                      | (349,260  | ) |             | 
|Decrease                          |  |                      | (3,048    | ) |             | 
|Increase in the option fair value |  |                      | -         |   |             | 
|Balance as of December 31         |  |                      | 795,155   |   |             | 



115







The following table
sets forth the number of SARs vested and the price of such SARs for the periods indicated:



|Year of Insurance |  | Number of outstanding SARs
    as of  December 31, 2011 |  | Number of Vested SARs
    as of December 31 |  | Exercise price | 
|----------------- |  | ------------------------------------------------------- |  | ------------------------------------------- |  | -------------- | 
|                  |  |                                                         |  | 2011                                        |  | 2010           | 
|                  |  |                                                         |  |                                             |  |                | 
|2003              |  | -                                                       |  | -                                           |  | 36,500         | 
|2004              |  | 40,000                                                  |  | 40,000                                      |  | 87,500         | 
|2005              |  | 40,000                                                  |  | 40,000                                      |  | 107,500        | 
|2006              |  | 53,000                                                  |  | 53,000                                      |  | 171,300        | 
|2007              |  | 45,007                                                  |  | 45,007                                      |  | 168,310        | 
|2008              |  | 65,216                                                  |  | 65,216                                      |  | 206,589        | 
|                  |  | 243,223                                                 |  | 243,223                                     |  | 777,699        | 



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.



Since 2009, Credicorp
had a new plan to certain key employees. Under this new plan (stock awards), 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
(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, 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, however, capital
gain taxes are assumed by employees. Credicorp estimates said income tax over the basis of the fair value of the shares granted
at the grant date.



(C)         Board
Practices



Credicorp’s
management is the responsibility of its Board of Directors, which, pursuant to Credicorp’s bye-laws, is comprised of eight
members. Directors need not be shareholders. Directors are elected and their remuneration is determined at Annual General Shareholders’
Meetings. Directors hold office for three-year terms. The date of expiration of our current Board of Directors is March 31, 2014.
Our current directors have no benefits in addition to the remuneration agreed at the Annual General Shareholders’ Meetings,
with the exception of the members of the audit committee which received an additional remuneration determined by the Annual General
Shareholders’ Meeting. They also do not have any benefits that could be enjoyed at the termination of their service terms.



Pursuant to Credicorp’s
bye-laws, the required quorum for business to take place during a Board meeting shall be a majority of the Directors of the Company.
The Board has the power to appoint any person as Director to fill a vacancy on the Board for the remainder of the period as a
result of the death, disability, disqualification or resignation of any Director. A resolution in writing signed by all Directors
shall be as valid as if had been passed at a meeting duly called and constituted.



116







Credicorp’s
audit committee is responsible for assisting in the recommendation of independent auditors to be appointed at the Annual General
Shareholders’ Meeting and reviewing the scope of internal and external audits. The Audit Committee also reviews compliance
with the system of internal control as well as financial controls, reviews our annual financial statements before their presentation
to regulatory bodies and maintains the integrity of the preparation of audits, oversight compliance with applicable law and regulations,
the establishment of procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting
controls, auditing matters, fraud and ethics, through Credicorp ́s Complaint System. The current members of the Audit Committee
are Mr. Raimundo Morales (Chairman since July 2011), Mr. Germán Suárez (financial expert) and Mr. Juan Carlos Verme
who was appointed by the board on May 25, 2011. Mr. Juan Carlos Verme replaced Mr. Reynaldo Llosa Barber who served as Chairman
of the Audit Committee until his term on the Audit Committee expired at the end of May 2012. The Audit Committee designated Mr.
Benedicto Cigüeñas to serve as advisor to the committee. Mr. Benedicto Cigüeñas Guevara is an economist
and became a Director of BCP in January 2005. Previously was Chief Financial Officer of BCP for 12 years.



The Audit Committee
has also been assigned by the Board of Directors to oversee the audit committee responsibilities of all Credicorp subsidiaries.
Credicorp’s Audit Committee therefore performs as the statutory audit committee of all Credicorp’s subsidiaries. During
2011, Audit Committee held ten sessions.



(D)         Employees



On December 31, 2011,
Credicorp had 22,276 employees, distributed as set forth in the following table:



|                   |  | At December 31, |                      
|------------------ |  | --------------- | ---------------------
|                   |  | 2009            |                      
|                   |  |                 | (Full-time employees)
|BCP                |  |                 | 16,748               
|Grupo Pacífico (1) |  |                 | 2,567                
|ASHC               |  |                 | 74                   
|Prima AFP          |  |                 | 750                  
|Others             |  |                 | 9                    
|Total Credicorp    |  |                 | 20,148               



(1)         Does
not include the employees of the acquired private hospitals.



All bank employees
in Peru are given the option of belonging to an employee union. These employee unions are collectively represented by the Federación
de Empleados Bancarios (the Federation of Banking Employees or FEB). In order to negotiate a collective agreement on behalf of
its members, FEB must have as members over 50% of all Peruvian banking employees. Because this level fell to below 50%, the most
recent collective bargaining agreement, which expired on June 30, 1995, was not renewed.



BCP was granted permission
by the Peruvian Ministry of Labor to cancel the registration of BCP’s union in 1996 due to limited participation. As of
December 31, 2011, no BCP employees belonged to a union. The last strike by union employees occurred in 1991 and did not interfere
with BCP’s operations.



(E)         Share
Ownership



As of February 13,
2012, the Romero family owned 13.44 million (14.24%) of our common shares. Mr. Luis Enrique Yarur is a controlling shareholder
of Banco de Chile e Inversiones (BCI), which owns 1.71 million (1.81%) of Credicorp’s common shares. None of our other directors
or executive officers beneficially own more than 1% of our common shares. See “Item 7. Major Shareholders and Related Party
Transactions—(A) Major Shareholders.” Other members of the Board of Directors that own our common shares are Mr. Raimundo
Morales, Mr. Fernando Fort Marie, Mr. Reynaldo Llosa Barber, Mr. Juan Carlos Verme, Mr. Felipe Ortiz de Zevallos and Mr. Germán
Suárez. Each of these directors own less than 1% of our total outstanding common shares.



117







ITEM 7.          MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS



(A)         Major
Shareholders



As of December 31,
2011, Credicorp had issued 94,382,317 common shares, of which 14,620,846 were held by ASHC. Under Bermuda law, ASHC has the right
to vote the common shares it owns. In order to restructure long term holdings, substantially all of our common shares held by
BCP and PPS were transferred to ASHC in April 2004.



The table below provides
details about the percentage of Credicorp’s common shares owned by holders of 5% or more of our total common shares, as
of February 13, 2012.



|Owner                                     |  | Common Shares |            |  | Percent of Class(1) | 
|----------------------------------------- |  | ------------- | ---------- |  | ------------------- | 
|Atlantic Security Holding Corporation (2) |  |               | 14,620,846 |  |                     | 
|Romero family (3)                         |  |               | 13,438,428 |  |                     | 



(1) As a percentage of issued and outstanding
shares (including shares held by ASHC).

(2)
As of February 13, 2012, Atlantic Security Bank (a subsidiary of ASHC) held 3,292,899shares
of Credicorp on behalf of clients as part of the Private Banking Services that ASB provides, and which shares are purchased or
sold based on client instructions. ASB does not have the power to dispose of these shares. Because the shares are held by ASB
on behalf of clients, which have the power to vote the shares, ASHC and ASB each disclaims beneficial ownership of the shares.

(3) Includes common
shares directly or indirectly owned by Dionisio Romero Paoletti and his family or companies owned or controlled by him. Mr. Romero
P. is the Chairman of the Board.



Approximately 14.61%
of Credicorp’s total issued and outstanding common shares are currently held in 2,689 individual accounts with Cavali, a
Peruvian securities clearing company.



As of February 13,
2012, 79,761,471 of common shares of Credicorp (excluding the 14,620,846 shares held by ASHC) were outstanding, of which approximately
68.55% were held in the United States. There were approximately 95 registered holders of Credicorp’s common shares in the
United States. Because many of these common shares were held by brokers or other nominees, and because of the impracticability
of obtaining accurate residence information for all beneficial shareholders, the number of registered holders in the United States
is not a representative figure of the beneficial holders or of the residence of beneficial holders. Credicorp is neither directly
nor indirectly controlled by another corporation or by any foreign government.



(B)         Related
Party Transactions



(i)          Credicorp



Under Bermuda law,
Credicorp is not subject to any restrictions on transactions with affiliates, other than such restrictions as are applicable to
Bermuda companies generally. Credicorp’s bye-laws provide that a director may not vote with respect to any contract or proposed
contract or arrangement in which that director has an interest or a conflict of interest. Credicorp has not engaged in any transactions
with related parties except through our subsidiaries.



Credicorp’s
consolidated financial statements as of December 31, 2009, 2010 and 2011 include transactions with related parties. For its 2009,
2010 and 2011 consolidated financial statements, Credicorp defines related parties as (i) related companies, (ii) its Board of
Directors, (iii) its key executives (defined as the management of our holdings) and (iv) enterprises that are controlled by these
individuals or entities through majority shareholding or their role as chairman or principal executive officer in those companies.



The following table
shows Credicorp’s main transactions with related companies as of December 31, 2009, 2010 and 2011.



|                                     |  |                             |         |   | Related companies |     |         |      | 
|------------------------------------ |  | --------------------------- | ------- | - | ----------------- | --- | ------- | ---- | 
|                                     |  | 2009                        |         |   | 2010              |     |         | 2011 | 
|                                     |  | (U.S. Dollars in thousands) |        
|                                     |  |                             |         |   |                   |     |         |      | 
|Direct loans                         |  | US$                         | 214,182 |   |                   | US$ | 265,566 |      | 
|Investments available-for-sale       |  |                             | 92,747  |   |                   |     | 120,486 |      | 
|Deposits                             |  |                             | 82,051  |   |                   |     | 101,979 |      | 
|Contingent credits                   |  |                             | 20,122  |   |                   |     | 26,994  |      | 
|Interest income related to loans     |  |                             | 4,896   |   |                   |     | 7,002   |      | 
|Interest expense related to deposits |  |                             | 1,680   |   |                   |     | 1,707   |      | 
|Derivatives at fair value            |  |                             | (283    | ) |                   |     | (1,335  | )    | 
|Other income                         |  | US$                         | 1,196   |   |                   | US$ | 2,327   |      | 



118







Credicorp made these
loans, contingent operations and derivative contracts with related parties in the ordinary course of business and in accordance
with the normal market terms available to other customers. Outstanding loan balances at the year-end are [guaranteed] by collateral
given by the related party. The loans to related companies as of December 31, 2011 have maturity dates ranging between January
2012 and October 2019 and an accrued annual interest average of 7.6% (and as of December 31, 2010 had a maturity between January
2011 and November 2018 and an accrued annual interest average of 5.9%). As of December 31, 2011, we recorded a US$1.5 million
provision for doubtful debt in connection with loans to related parties and as of December 31, 2010, there was no provision for
doubtful debts in connection with loans to related parties. The amount of this provision is established based on an assessment,
performed on a continuous basis, of the financial position of each related party and the market in which it operates. The decrease
in the level of direct loans from 2010 to 2011 was mainly caused by additional financing granted to two entities: Agrícola
del Chira S.A., and FYP Inversiones S.A.C.



As of December 31,
2009, 2010 and 2011, Credicorp’s directors, officers and employees had been involved, directly and indirectly, in credit
transactions with certain subsidiaries, as permitted by Peruvian Law No. 26702. This law regulates and limits certain transactions
with employees, directors and officers of banks and insurance companies in Peru. As of December 31, 2009, 2010 and 2011, direct
loans to employees, directors and key management of Credicorp amounted to US$133.3 million, US$140.0 million and US$176.5 million,
respectively. These loans have been granted in the ordinary course of business and on market terms as allowed by regulations promulgated
under Section 402 of Sarbanes-Oxley. Therefore, no privileged conditions have been granted on any type of loans to directors and
executive officers. These loans are paid monthly and earn interest at rates that are similar to market rates for comparable loans.



Credicorp does not
grant directors or key personnel loans that are guaranteed with its shares or shares of its other companies.



119







(C)         Interests
of Experts and Counsel



Not applicable.



ITEM 8.          FINANCIAL
INFORMATION



(A)         Consolidated
Statements and Other Financial Information



Legal Proceedings



We, along with our
subsidiaries, are involved in certain legal proceedings that arise in the normal course of conducting business. We do not believe
that any liabilities that may result from such proceedings would have a material adverse effect on our financial condition or
results of operations, or on the financial condition or results of operations of any of our subsidiaries.



The following is a
description of material ongoing litigation as of the date of this Annual Report.



Madoff Trustee
Litigation. On September 22, 2011, the Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS),
and the substantively consolidated bankruptcy estate of Bernard L. Madoff (“the Madoff Trustee”) filed an adversary
proceeding complaint against Credicorp’s subsidiary Atlantic Security Bank (ASB) in the U.S. Bankruptcy Court for the Southern
District of New York. The adversary complaint seeks recovery of approximately US$ 120 million. This amount is alleged to be equal
to amount of funds that ASB managed in Atlantic US Blue Chip Fund that were invested in Fairfield Sentry Fund Limited (hereafter
“Fairfield Sentry”) and redeemed, along with returns thereon between the end of 2004 and the beginning of 2005. The
Complaint further alleges that Fairfield was a “feeder fund” that invested in BLMIS; 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 Sentry and others;
and that the Madoff Trustee is entitled to recover the sums sought from ASB as “subsequent transfers” or “avoided
transfers” from BLMIS to Fairfield that Fairfield Sentry in turn subsequently transferred to ASB. The Madoff Trustee has
filed similar actions against numerous other alleged “subsequent transferees” that invested in Fairfield Sentry and
its sister entities which, in turn, invested and redeemed funds from BLMIS. ASB counsel and the Trustee have entered into a stipulation
that ASB has until September 2012 to move, answer or otherwise respond to the Complaint. Management believes that ASB has substantial
defenses against the Madoff Trustee’s claims alleged in the Complaint and intends to contest these claims vigorously.



In addition, ASB,
as well as other defendants, filed a motion to withdraw the reference to Bankruptcy Court pursuant to an administrative order
by the Bankruptcy Court directing that all defendants to pending adversary actions brought by the Madoff Trustee file their motions
to withdraw no later than April 2, 2012. 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. Judge Rakoff of the Southern District Court of New York (“Federal
District Court”), by way of an order issued on April 13, already withdrew the reference to the Bankruptcy Court as to one
particular issue, and has directed that the defendants in the consolidated actions, including ASB, file one consolidated brief
regarding this particular issue no later than May 3, 2012. ASB anticipates the Federal District Court may subsequently establish
additional consolidated briefing procedures and schedules which may directly impact the action pending against ASB, including
with respect to one or more of the other issues advanced in support of ASB’s Withdrawal Motion.



120







Fairfield Litigation.
On April 13, 2012, the Liquidators of Fairfield Sentry and other Fairfield funds filed an adversary proceeding complaint in the
U.S. Bankruptcy Court for the Southern District of New York against (1) ASB and (2) beneficial owners of accounts in the Fairfield
Sentry funds held by ASB, styled In re Fairfield Sentry, Ltd., 10-13164 (Adv. Pro No. 12-01550 (BRL)) (“Fairfield Complaint”).
The Fairfield Complaint is similar to other complaints the Fairfield Liquidators have filed in the Southern District Bankruptcy
Court against other entities that invested in various Fairfield funds and redeemed their accounts prior to the Fairfield funds’
insolvency in the wake of the collapse of BLMIS. The Fairfield Complaint seeks recovery against ASB and the beneficial owners
for amounts totaling $115,165,423.28 that were redeemed prior to June 15, 2005. The complaint alleges various common law claims
grounded in British Virgin Islands (“BVI”) law against both ASB and the beneficial owners on behalf of whom ASB held
and redeemed Fairfield Sentry Fund shares.



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 Liquidators have been
stayed, pending resolution of litigation in the BVI, where a Court of Appeal is currently deciding whether the Liquidators may
recover proceeds from their investors.



ASB believes it has
substantial defenses against the Liquidators’ claims alleged in the Fairfield Complaint and intends to contest these claims
vigorously.



Government Investigations



Neither we, nor any
of our subsidiaries, are involved in any government investigation.



Dividend Policy



Pursuant to Bermuda
law, we may declare and pay dividends from time to time provided that after payment of the dividends: (i) we are able to pay our
liabilities as they become due, and (ii) the realizable value of our assets is not less than the aggregate value of our liabilities,
issued share capital, and share premium accounts. We cannot make any assurances as to the amount of any dividends or as to whether
any dividends will be paid at all, although we currently intend to declare and pay dividends annually, and our Board of Directors
currently expects to authorize the payment of an annual dividend to the shareholders of no less than 25% of our consolidated net
income. However, our payment of dividends is subject to Bermuda law and to the discretion of our Board of Directors. The Board’s
decision will depend on (i) general business conditions, (ii) our financial performance, (iii) the availability of dividends from
our subsidiaries and any restrictions on their payment, and (iv) other factors that the Board may deem relevant.



We rely almost exclusively
on dividends from our subsidiaries for the payment of our corporate expenses and for the distribution of dividends to holders
of our common shares. Subject to certain reserve and capital adequacy requirements under applicable banking and insurance regulations,
we are able to cause our subsidiaries to declare dividends. To the extent our subsidiaries do not have funds available or are
otherwise restricted from paying us dividends, our ability to pay dividends on our common shares will be adversely affected. Currently,
there are no restrictions on the ability of Grupo Credito, BCP, ASHC and Grupo Pacífico or any of our other subsidiaries
to pay dividends abroad. In addition, Grupo Credito, BCP, and Grupo Pacífico intend to declare and pay dividends in Nuevos
Soles, while we intend to declare and pay dividends in U.S. Dollars. If the value of the Nuevo Sol falls relative to the U.S.
Dollar between the date of declaration and the date of payment of dividends, the value of the dividends we pay would be adversely
affected. See “Item 3. Key Information—(A) Selected Financial Data—Exchange Rates.”



121







The following table
shows cash and stock dividends that we paid in the periods indicated:



|Year ended December 31, |  | Number of Shares Entitled to Dividends |  | Cash Dividends Per Share |      |  | Stock Dividends Per Share | 
|----------------------- |  | -------------------------------------- |  | ------------------------ | ---- |  | ------------------------- | 
|2000                    |  | 94,382,317                             |  | US$                      | 0.10 |  |                           | 
|2001                    |  | 94,382,317                             |  | US$                      | 0.10 |  |                           | 
|2002                    |  | 94,382,317                             |  | US$                      | 0.40 |  |                           | 
|2003                    |  | 94,382,317                             |  | US$                      | 0.30 |  |                           | 
|2004                    |  | 94,382,317                             |  | US$                      | 0.40 |  |                           | 
|2005                    |  | 94,382,317                             |  | US$                      | 0.80 |  |                           | 
|2006                    |  | 94,382,317                             |  | US$                      | 1.10 |  |                           | 
|2007                    |  | 94,382,317                             |  | US$                      | 1.30 |  |                           | 
|2008                    |  | 94,382,317                             |  | US$                      | 1.50 |  |                           | 
|2009                    |  | 94,382,317                             |  | US$                      | 1.70 |  |                           | 
|2010                    |  | 94,382,317                             |  | US$                      | 1.95 |  |                           | 
|2011                    |  | 94,382,317                             |  | US$                      | 2.30 |  |                           | 



On February 22, 2012,
our Board of Directors declared a cash dividend of US$2.30 per common share held at the close of business on April 18, 2012. This
dividend was distributed on May 11, 2012.



ITEM 9.          THE
OFFER AND LISTING



(A)         Offer
and Listing Details



Price History of
Credicorp’s Stock



Our common shares
have been traded on the New York Stock Exchange since October 25, 1995 under the symbol BAP. Our common shares also trade on the
Lima Stock Exchange. They are quoted in U.S. Dollars on both the New York Stock Exchange and the Lima Stock Exchange. The table
below sets forth, for the periods indicated, the reported high and low closing prices and average daily trading volume for our
common shares on the New York Stock Exchange.



|                                  |  | High |        |  | Low |     |        | Average
Daily Volume | 
|--------------------------------- |  | ---- | ------ |  | --- | --- | ------ | -------------------- | 
|2007                              |  | US$  | 71.59  |  |     | US$ | 35.46  |                      | 
|2008                              |  | US$  | 80.33  |  |     | US$ | 28.18  |                      | 
|2009                              |  | US$  | 76.74  |  |     | US$ | 32.23  |                      | 
|2010                              |  | US$  | 124.90 |  |     | US$ | 69.02  |                      | 
|2011                              |  | US$  | 117.31 |  |     | US$ | 82.25  |                      | 
|                                  |  |      |        |  |     |     |        |                      | 
|2010                              |  |      |        |  |     |     |        |                      | 
|First quarter                     |  | US$  | 84.70  |  |     | US$ | 69.02  |                      | 
|Second quarter                    |  | US$  | 95.56  |  |     | US$ | 76.78  |                      | 
|Third quarter                     |  | US$  | 114.89 |  |     | US$ | 88.39  |                      | 
|Fourth quarter                    |  | US$  | 124.90 |  |     | US$ | 113.23 |                      | 
|2011                              |  |      |        |  |     |     |        |                      | 
|First quarter                     |  | US$  | 117.31 |  |     | US$ | 95.18  |                      | 
|Second quarter                    |  | US$  | 105.57 |  |     | US$ | 82.55  |                      | 
|Third quarter                     |  | US$  | 102.79 |  |     | US$ | 82.25  |                      | 
|Fourth quarter                    |  | US$  | 111.41 |  |     | US$ | 89.44  |                      | 
|2012                              |  |      |        |  |     |     |        |                      | 
|First quarter                     |  | US$  | 129.51 |  |     | US$ | 103.01 |                      | 
|Second quarter (through April 20) |  | US$  | 133.88 |  |     | US$ | 128.84 |                      | 

Source : Bloomberg



122







The table below sets
forth, for the periods indicated, the reported high and low closing prices and average daily trading volume for our common shares
on the Lima Stock Exchange.



|                                  |  | High           |        |  | Low |  |        | Average
Daily Volume | 
|--------------------------------- |  | -------------- | ------ |  | --- |  | ------ | -------------------- | 
|                                  |  | (U.S. Dollars) |       
|2007                              |  |                | 71.29  |  |     |  | 35.64  |                      | 
|2008                              |  |                | 80.16  |  |     |  | 28.90  |                      | 
|2009                              |  |                | 76.35  |  |     |  | 32.53  |                      | 
|2010                              |  |                | 124.79 |  |     |  | 69.40  |                      | 
|2011                              |  |                | 118.67 |  |     |  | 82.50  |                      | 
|                                  |  |                |        |  |     |  |        |                      | 
|2010                              |  |                |        |  |     |  |        |                      | 
|First quarter                     |  |                | 84.82  |  |     |  | 69.40  |                      | 
|Second quarter                    |  |                | 95.26  |  |     |  | 76.89  |                      | 
|Third quarter                     |  |                | 114.55 |  |     |  | 88.16  |                      | 
|Fourth quarter                    |  |                | 124.79 |  |     |  | 112.83 |                      | 
|2011                              |  |                |        |  |     |  |        |                      | 
|First quarter                     |  |                | 118.67 |  |     |  | 95.20  |                      | 
|Second quarter                    |  |                | 105.30 |  |     |  | 85.00  |                      | 
|Third quarter                     |  |                | 102.40 |  |     |  | 82.50  |                      | 
|Fourth quarter                    |  |                | 111.10 |  |     |  | 88.50  |                      | 
|2012                              |  |                |        |  |     |  |        |                      | 
|First quarter                     |  |                | 128.85 |  |     |  | 102.76 |                      | 
|Second quarter (through April 20) |  |                | 133.12 |  |     |  | 128.70 |                      | 

Source : Bloomberg



The table below sets
forth, for the indicated months, the reported high and low closing prices for our common shares on the New York Stock Exchange.



|                         |  | High           |        |  | Low | 
|------------------------ |  | -------------- | ------ |  | --- | 
|                         |  | (U.S. Dollars) |       
|2011                     |  |                |        |  |     | 
|October                  |  |                | 111.41 |  |     | 
|November                 |  |                | 111.08 |  |     | 
|December                 |  |                | 111.14 |  |     | 
|2012                     |  |                |        |  |     | 
|January                  |  |                | 113.66 |  |     | 
|February                 |  |                | 124.27 |  |     | 
|March                    |  |                | 129.51 |  |     | 
|April (through April 20) |  |                | 133.88 |  |     | 

Source : Bloomberg



The table below sets
forth, for the indicated months, the reported high and low closing prices for our common shares on the Lima Stock Exchange.



|                         |  | High           |        |  | Low | 
|------------------------ |  | -------------- | ------ |  | --- | 
|                         |  | (U.S. Dollars) |       
|2011                     |  |                |        |  |     | 
|October                  |  |                | 111.10 |  |     | 
|November                 |  |                | 111.00 |  |     | 
|December                 |  |                | 110.68 |  |     | 
|2012                     |  |                |        |  |     | 
|January                  |  |                | 112.73 |  |     | 
|February                 |  |                | 123.70 |  |     | 
|March                    |  |                | 128.85 |  |     | 
|April (through April 20) |  |                | 133.12 |  |     | 

Source: Bloomberg



123







On April 20 2012, the last sale price
of our common shares on the New York Stock Exchange was US$130.22 per share. On April 20, 2012, the closing price of our common
shares on the Lima Stock Exchange was US$131.15.



(B)         Plan
of Distribution



Not applicable.



(C)         Markets



The Lima Stock
Exchange



(i)          Trading



As of December 2011,
there were 266 companies listed on the Bolsa de Valores de Lima (Lima Stock Exchange). The Lima Stock Exchange is Peru’s
only securities exchange and was established in 1970. Trading on the Lima Stock Exchange is primarily done on an electronic trading
system. Trading hours are Monday through Friday as follows: 8:20 a.m.-8:30 a.m. (pre-market ordering); 8:30 a.m.-2:55 p.m. (trading);
and 2:55 p.m.-3:10 p.m. (after market sales). These trading hours became effective on March 12, 2012. Equity securities may also
be traded in an open outcry auction floor session, which was the exclusive method of trading equity securities prior to the introduction
of electronic trading. Nearly 100% of all transactions on the Lima Stock Exchange currently take place on the electronic system.



Transactions during
both the open trading and the electronic sessions are executed through brokerage firms and stock brokers on behalf of their clients.
Brokers submit their orders in strict accordance with written instructions, following the chronological order in which they were
received. The orders specify the type of security ordered or offered as well as the amounts and the price of the sale or purchase.
In general, share prices are permitted to increase or decrease up to 15% for Peruvian companies, and up to 30% for foreign companies,
within a single trading day.



The Peruvian stock
market capitalization increased, in U.S. Dollar terms, by 65.8% in 2006, 80.3% in 2007. It decreased by 47.1% in 2008 as a result
of the global economic crisis. It rebounded in 2009, growing by 87.5%, and during 2010, it again performed well, growing by 56.2%.
Finally, in 2011, it decreased by 24.4%, with most of the decline occurring during the first nine months of the year.



Traded volume in 2011
improved relative to 2010 and 2009. The accumulated total for 2011 was US$7,817 million, with 79.8% relating to trading in equity
securities, 8.4% in fixed-income securities and the remaining 11.8% in repo transactions.



The Indice General
de la Bolsa de Valores de Lima (the General Index of the Lima Stock Exchange or IGBVL) increased, in U.S. Dollar terms, by 186.9%
in 2006 and by 45.6% in 2007. It decreased by 61.5% in 2008 but increased by 101.0% in 2009 and by 69.7% in 2010. Finally, it
decreased by 16.7% in 2011.



(ii)         Market
Regulation



The Securities Market
Law (Legislative Decree 861) addresses matters such as transparency and disclosure, takeovers and corporate actions, capital market
instruments and operations, the securities markets and broker-dealers, and risk rating agencies. The Security Market Superintendency
(SMV) - former CONASEV -, a governmental entity attached to Peru’s Ministry of Economy and Finance, was given additional
responsibilities relating to the supervision, regulation, and development of the securities market, while the Lima Stock Exchange
and its member firms were given the status of self-regulatory organizations. Additionally, a unified system of guarantees and
capital requirements was established for the Lima Stock Exchange and its member firms.



124







SMV is governed by
a five-member board, which includes an independent director and the Superintendent, whose appointed by the government. SMV has
broad regulatory powers. These powers include studying, promoting, and making rules for the securities market, supervising its
participants, and approving the registration of public offerings of securities.



SMV supervises the
securities markets and the dissemination of information to investors. It also (i) governs the operations of the Public Registry
of Securities and Brokers, (ii) regulates mutual funds and their management companies, (iii) monitors compliance with accounting
regulations by companies under its supervision as well as the accuracy of financial statements and (iv) registers and supervises
auditors who provide accounting services to those companies under SMV’s supervision.



On August 22, 1995,
SMV approved regulations governing the public offering of securities in Peru by entities organized outside of Peru and, for the
first time, authorized foreign companies to be listed on the Lima Stock Exchange. On October 25, 1995, we became the first non-Peruvian
company to list our shares on the Lima Stock Exchange. See “Item 4. Information on the Company—(B) Business Overview—(11)
Supervision and Regulation.”



Pursuant to the Securities
Market Law, the Lima Stock Exchange must maintain a guarantee fund that is funded by its member firms. The actual contributions
to be made by the 27 member firms of the Lima Stock Exchange are based on volume traded over the exchange. At present, the fund
has approximately S/.38.4 million (US$14.4 million). In addition to the guarantee fund managed by the Lima Stock Exchange, each
member firm is required to maintain a guarantee for operations carried on outside the exchange in favor of SMV. Such guarantees
are generally established through stand-by letters of credit issued by local banks.



(D)         Selling
Shareholders



Not applicable.



(E)         Dilution



Not applicable.



(F)         Expenses
of the issue



Not applicable.



ITEM 10.         ADDITIONAL
INFORMATION



(A)         Share
Capital



Not applicable.



(B)         Memorandum
and Articles of Association



“Item 10. Additional
Information—Memorandum and Articles of Incorporation” from our Annual Report on Form 20-F dated June 27, 2003 is incorporated
herein by reference.



At our Annual General
Shareholders’ Meeting held on March 31, 2005, we adopted an amendment to our bye-laws that increased the number of our directors
from six to eight. In addition, we also removed provisions that established a classified board structure with staggered terms,
adopting instead fixed three-year terms to be served until the end of the Annual General Shareholders’ Meeting for the year
in which the three-year period expires.



125







(C)         Material
Contracts



As of the date hereof,
we have not, nor have our subsidiaries, entered into any material contracts.



(D)         Exchange
Controls



We have been designated
as a non-resident for Bermuda exchange control purposes, and therefore, there are no restrictions on our ability to transfer non-Bermuda
funds in and out of Bermuda or to pay dividends to United States residents who are holders of our common shares.



We rely almost exclusively
on dividends from Grupo Credito, BCP, ASHC, Grupo Pacifico, and our other subsidiaries for the payment of dividends to holders
of our common shares. To the extent our subsidiaries are restricted by law from paying us dividends, our ability to pay dividends
on our common shares will be adversely affected.



In addition, we present
our financial statements and pay dividends in U.S. Dollars. BCP and Grupo Pacifico prepare their financial statements and pay
dividends in Nuevos Soles. If the value of the Nuevo Sol were to fall relative to the U.S. Dollar between the date of declaration
and the date of payment of dividends, the value of the dividends we receive from our subsidiaries would be adversely affected.
On an overall basis, the Peruvian currency has appreciated against the US. Dollar during the last decade.



Although substantially
all of the customers of BCP, ASB and Grupo Pacifico are located in Peru, as of December 31, 2011, approximately 61.1% of BCP’s
loan portfolio, 100% of ASHC’s loan portfolio, and 84.3% of Grupo Pacifico’s premiums were denominated in U.S. Dollars.
Most of the borrowers or insureds of these three companies use Nuevos Soles. Therefore, a devaluation of the Nuevo Sol would effectively
increase the cost to the borrower of repaying its loans and the cost to the insured of making its premium payments. As a result,
devaluation could lead to more nonperforming loans or unpaid premiums for BCP, ASB and Grupo Pacifico.



One circumstance that
could lead to a devaluation is a decline in Peruvian foreign reserves to inadequate levels. Although the current level of Peru’s
foreign reserves compares favorably with those of other Latin American countries, there can be no assurance that Peru will be
able to maintain adequate foreign reserves to meet its foreign currency-denominated obligations or that Peru will not devalue
its currency should its foreign reserves decline. See “Item 4. Information on the Company—(B) Business Overview—(9)
Peruvian Government and Economy.”



Since March 1991,
there have been no exchange rate controls in Peru and all foreign exchange transactions are based on free market exchange rates.
Current Peruvian regulations on foreign investment allow the foreign holders of equity shares of Peruvian companies to receive
and repatriate 100% of the cash dividends distributed by the company. These investors are allowed to purchase foreign exchange
at free market exchange rates through any member of the Peruvian banking system.



(E)         Taxation



At the present time,
there is no Bermuda income or profits tax, withholding tax, capital gains tax, capital transfer tax, estate duty, or inheritance
tax that we must pay or our shareholders must pay with respect to their shares. We have obtained an assurance from the Minister
of Finance of Bermuda under the Exempted Undertakings Tax Protection Act 1966 that, in the event that any legislation is enacted
in Bermuda imposing any tax on profits or income, or on any capital asset, gain, or appreciation or any tax in the nature of an
estate duty or inheritance tax, such tax shall not, until March 28, 2016, be applicable to us or to any of our operations or to
our shares, debentures, or other obligations. This assurance, however, does not cover any tax applicable to persons ordinarily
resident in Bermuda or to any taxes that we must pay with respect to real property that we own or lease in Bermuda.



126







As an exempted company,
we are liable to pay in Bermuda an annual government fee based upon our authorized share capital and the premium on our issued
common shares, which amounted to approximately US$18,670 in 2011.



On February 15, 2011,
the Peruvian government enacted Law 29663. On July 21, 2011 Law 29663 was amended by Law 29757. This new Law partially modifies
the country’s income tax regime by subjecting to taxation in Peru capital gains derived from an indirect transfer of shares
and expanding the type of income that will qualify as Peruvian-source income. Under the new law, any transfer of shares issued
by a non-resident entity will be subject to taxation in Peru (30% or 5%) if at any point during the 12 prior months to such transfer:



| | a. | 50% or more of the fair market value of the foreign shares
–to be transferred—is derived from shares or participation rights representing the equity capital of one or more Peruvian
entities. There is a rebuttable presumption that the threshold is met if the non-resident entity is a resident in a tax heaven.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b. | The shares to be transferred represent at least 10% or
more of the equity capital of the non-resident entity.
| | -- | -------------------------------------------------------------------------------------------------------------



At the same time,
two new obligations were imposed on Peruvian domiciled companies:



(1)         Each
Peruvian domiciled company is now required to report to the Peruvian Tax Administration (SUNAT) transfers of its own shares or
transfers of the shares of the non-Peruvian domiciled company that is the owner of its shares; and



(2)         Each
Peruvian domiciled company is jointly liable for the income tax not paid by a non-Peruvian domiciled transferor that is directly
or indirectly linked to the domiciled company (whether by means of control, management or equity participation) in connection
with the transfer of the domiciled company’s shares, except in the event that the purchaser or acquirer of the shares is
a Peruvian individual or entity.



The effectiveness
of the obligations mentioned in (1) and (2) above is subject to additional regulations which have not been enacted yet by the
Peruvian government. Until definitive regulations are enacted by the Peruvian government, which may clarify any obligation by
Credicorp to withhold income tax for non-Peruvian domiciled transferors, we do not know what impact, if any, this new law will
have on our company, subsidiaries or shareholders.



(F)         Dividends
and Paying Agents



Not applicable.



(G)         Statement
by Experts



Not applicable.



(H)         Documents
on Display



The documents referred
to in this Annual Report are available for inspection at our registered office.



127







(I)         Subsidiary
Information



Not applicable.



ITEM 11.         QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



Our activities involve
principally the use of financial instruments, including derivatives. We accept deposits from customers at both fixed and floating
rates, for various periods, and seek to earn above-average interest margins by investing these funds in high-quality assets. We
seek 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.



We also seek to raise
our 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; we also enter into guarantees
and other commitments such as letters of credit and performance. We also trade in financial instruments where we take 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 our 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 our continuing profitability and each individual
within our Group is accountable for the risk exposures relating to his or her responsibilities. We are 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 our strategic planning process.



Risk Management
Structure



Our board of directors
and the boards of each subsidiary are ultimately responsible for identifying and controlling risks; however, there are separate
independent bodies in the major subsidiaries (BCP, Grupo Pacífico, ASB, Edyficar and Prima AFP) responsible for managing
and monitoring risks, as further explained below:



Board of Directors: The Board of
Directors of each major subsidiary is responsible for the overall risk management approach and 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, risk related to the use of derivative
financial instruments and non-derivative financial instruments.



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 for managing and monitoring the relevant risk decisions.



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.



128







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



Treasury and Foreign Exchange Departments:
Our Treasury Department is responsible for managing the Group’s assets and liabilities and the overall financial structure.
It is also primarily responsible for managing funding and liquidity risks; in addition to managing investment, forward and spot
portfolios. The Treasury Department also monitors the related liquidity, interest rate and exchange rate risks, under the policies
and limits currently effective.



Risk Measurement
and Reporting Systems



Our risks are measured
using a method which reflects both expected losses, which are those losses likely to arise in normal circumstances, and unexpected
losses, which are estimated based on statistical models. The models make use of probabilities derived from historical experience,
adjusted to reflect the economic environment. We also examine worst case scenarios that might arise if extreme and unlikely events
do, in fact, occur.



Monitoring and controlling
risks are primarily performed based on limits that we establish. These limits reflect our business strategy, the market environment
and the level of risk that we are willing to accept. In addition, we monitor and measure our overall risk bearing capacity relative
to our aggregate risk exposure across all risk types and activities.



Information compiled
from all our subsidiaries is examined and processed in order to analyze, control and identify risks early. 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 periodically assesses the fair value of the investments and the appropriateness of the
allowance for credit losses.



Risk Mitigation



As part of our overall
risk management, we use 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 (based on economic considerations rather than the IFRS
hedge accounting regulations). The effectiveness of all the hedge relationships is monitored monthly. In situations of ineffectiveness,
we will enter into a new hedge relationship to mitigate risk on a continuous basis.



We actively use collateral
to reduce credit risks.



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.

129







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



Market Risk



We take 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.



We separate 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).



Trading portfolios
include those liquid positions arising from market-making transactions where we act as principal with clients or with the market.
Non-trading portfolios consist of relatively illiquid positions, mainly banking assets and liabilities (deposits and loans) and
non-trading investments (available-for-sale).



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



Trading Book



The trading book is
characterized for having liquid positions in equities, bonds, foreign currencies and derivatives. Some limits have been set in
order to control and monitor the risks undertaken. These risks arise from the size of the positions and/or from the volatility
of the risk factors embedded in each financial instrument. Regular reports are prepared for the Risk Management Committees and
top management.



(i)          Value
at Risk (VaR)



We apply VaR to our
trading portfolios 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. The Risk Management Committee set limits on the level of risk that may
be accepted.



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



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



130







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 by multiplying the one-day
VaR by 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 assessment of
past movements has been based on historical one-year data and 17 market risk factors, which include: 9 market curves, 5 stock
prices, 3 mutual funds values and one volatility series. The Group applies these historical changes in rates directly to its current
positions (a method known as historical simulation).



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 our risks taken. These risks arise from the size of our 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, our risk management committees and our senior managers.



In VaR calculations,
the foreign exchange effect is not included and as such the calculation is measured assuming a constant exchange rate –
ALM Book (See Item 11, Trading book, (ii) Backtesting).



As of December 31,
2011 and 2010, our VaRs by type of asset were as follows:



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



As of December 31,
2011 and 2010, our VaRs by risk type were as follows:



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



For disclosures purposes,
minimum, maximum and average in VaR calculation and backtesting, are estimated for BCP’s trading book. This represents approximately
80 percent of the total exposure to the trading risk in the Group’s portfolio.



For the year ended
December 31, 2011, the BCP’s consolidated VaR is as follows:



|              |  | Consolidated VaR |         
|------------- |  | ---------------- | --------
|              |  |                  | US$(000)
|Average daily |  |                  | 6,251   
|Highest       |  |                  | 10,333  
|Lowest        |  |                  | 3,212   



131







(ii)         Backtesting



Backtesting is performed
on a trading book to verify the predictive power of the VaR calculations. Backtesting compares results of the positions considered
for the calculation of VaR and the calculation of the VaR from the previous day.



Backtesting exceptions
occur when real losses exceed the estimated VaR for the previous day. In order for a backtesting analysis to be considered valid,
it should be based on a minimum of 252 observations, and when it has 504 observations, (2 years of data), a moving window is created.



Every month, back-testing
exceptions are analyzed and reports are prepared to explain the results. These reports are presented to the Risk Committee of
the Treasury and ALM, our risk management committees and our senior Management.



During 2011, BCP recorded
one-backtesting exception, when actual losses exceeded daily VaR limits (based on 252 observations); therefore, the VaR model
is statistically correct. This exception was due to an increase along the PEN curve, especially for the short term.



(iii)        Stress
test



A stress test is calculated
for the Group. The test calculates the maximum loss that the Group incurs in light of daily shocks to the market from March 18,
2008 until the effective date of the stress test. The maximum loss is considered the outcome for the Stress test.



The methodology for
the stress test assumes a certain “holding period” until positions can be closed (1 - 10 days). The time horizon used
to calculate the losses is one day; however, the final figures are amplified to a 10-day time frame and the final calculation
is determined by multiplying the one-day losses 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 that is identical and independent; otherwise, the worst loss
of 10 days will be an approximation.



The results of our
stress test as of December 31, 2011 and December 31, 2010, by type of asset, were as follows:



|                                  |  | 2011     |        |   | 2010     | 
|--------------------------------- |  | -------- | ------ | - | -------- | 
|                                  |  | US$(000) |        |   | US$(000) | 
|Equity investments                |  |          | 1,330  |   |          | 
|Debt investments                  |  |          | 5,209  |   |          | 
|Swaps                             |  |          | 4,321  |   |          | 
|Forwards                          |  |          | 7,426  |   |          | 
|Options                           |  |          | 27     |   |          | 
|Diversification effect            |  |          | (7,394 | ) |          | 
|Consolidated VaR by type of asset |  |          | 10,919 |   |          | 



The results of our
stress test as of December 31, 2011 and December 31, 2010, by risk type, were as follows:



|                              |  | 2011     |        |   | 2010     | 
|----------------------------- |  | -------- | ------ | - | -------- | 
|                              |  | US$(000) |        |   | US$(000) | 
|Interest rate risk            |  |          | 10,985 |   |          | 
|Price risk                    |  |          | 1,330  |   |          | 
|Volatility risk               |  |          | 8      |   |          | 
|Diversification effect        |  |          | (1,404 | ) |          | 
|Consolidated VaR by risk type |  |          | 10,919 |   |          | 



132







ALM Book



The management of
risks associated with long-term and structural positions is called ALM. Non-trading portfolios which comprise the ALM book are
exposed to different sensitivities that can bring about a deterioration in the value of the Group’s assets relative to its
liabilities and hence can reduce the Group’s net worth.



Interest 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 flow 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 is exposed to both fair value interest rate risk and cash flow interest rate risk.
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 consists
of aggregating re-pricing timeframes into buckets and checking if each bucket nets to zero. Different bucketing schemes may be
used. An interest rate gap is simply a positive or negative net re-pricing timeframe for one of the buckets.



The table below summarizes
our exposure to interest rate risks. It includes our 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                                                                   |  |                         | 2,162,685
|Assets designated at fair value through profit and loss                 |  |                         | 239      
|Premiums and other policies receivables                                 |  |                         | -        
|Accounts receivable from re-insurers and co-insurers                    |  |                         | -        
|Other assets                                                            |  |                         | -        
|Total assets                                                            |  |                         | 6,784,998
|Liabilities                                                             |  |                         |          
|Deposits and obligations                                                |  |                         | 4,373,417
|Due to banks and correspondents                                         |  |                         | 463,660  
|Liabilities designated at fair value through profit or loss             |  |                         | -        
|Technical, insurance claims reserves and reserves for unearned premiums |  |                         | 23,622   
|Bonds and subordinated 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



133







|                                                                        |  | As of December 31, 2010 |          
|----------------------------------------------------------------------- |  | ----------------------- | ---------
|                                                                        |  | Up to 1
    month       |          
|                                                                        |  | US$(000)                |          
|Assets                                                                  |  |                         |          
|Cash and due from banks                                                 |  |                         | 5,567,838
|Investments                                                             |  |                         | 535,658  
|Loans                                                                   |  |                         | 1,903,439
|Assets designated at fair value through profit and loss                 |  |                         | -        
|Premiums and other policies receivables                                 |  |                         | -        
|Accounts receivable from re-insurers and co-insurers                    |  |                         | -        
|Other assets                                                            |  |                         | -        
|Total assets                                                            |  |                         | 8,006,935
|Liabilities                                                             |  |                         |          
|Deposits and obligations                                                |  |                         | 6,366,203
|Due to banks and correspondents                                         |  |                         | 511,317  
|Accounts payable to re-insurers and co-insurers                         |  |                         | -        
|Technical, insurance claims reserves and reserves for unearned premiums |  |                         | 51,258   
|Bonds and subordinated 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  



Sensitivity
to Changes in Interest Rates



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



The sensitivity of
the consolidated income statement reflects 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, at various interest rates, our fixed rate available-for-sale financial assets
before income tax and non-controlling interest. The analysis includes the effect of any associated hedges and derivative instruments
designated as cash flow hedges, as of December 31, 2011 and 2010:



|                  |  | 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



134







|                  |  | 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 our current interest
rate risk profile. This effect, however, does not incorporate actions that would be taken by our management to mitigate the impact
of this interest rate risk. In addition, we seek 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 as well, including an assumption that all positions run to maturity.



Securities and mutual
funds are not considered part of investment securities for sensitivity calculation purposes; however, presented below is a table
that demonstrates how our expected unrealized gain or loss (before income taxes) on equity securities, mutual funds, and hedge
funds (as of December 31, 2010 and December 31, 2011) would correspond to changes in market prices of these securities at the
10%, 25% and 30% levels:



|Market price sensitivity |  | Changes in market 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   |          | 



Foreign Exchange
Risk



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



135







Foreign currency transactions
are executed using the free market exchange rates applicable in countries in which Credicorp’s subsidiaries operate. As
of December 31, 2011 and 2010, the Group’s assets and liabilities by currencies were as follows:



|2011                                                                             |  | U.S. Dollars |             |   | Peruvian  currency |  |             | Other currencies |  |  | Total     |  
|-------------------------------------------------------------------------------- |  | ------------ | ----------- | - | ------------------ |  | ----------- | ---------------- |  |  | --------- | -
|                                                                                 |  | US$(000)     |             |   | US$(000)           |  |             | US$(000)         |  |  | US$(000)  |  
|                                                                                 |  |              |             |   |                    |  |             |                  |  |  |           |  
|Monetary assets -                                                                |  |              |             |   |                    |  |             |                  |  |  |           |  
|Cash and due from banks                                                          |  |              | 3,848,401   |   |                    |  | 1,528,576   |                  |  |  | 125,885   |  
|Trading securities                                                               |  |              | 18,416      |   |                    |  | 57,195      |                  |  |  | -         |  
|Available-for-sale investments                                                   |  |              | 2,402,643   |   |                    |  | 3,156,017   |                  |  |  | 356,941   |  
|Loans, net                                                                       |  |              | 9,734,175   |   |                    |  | 6,773,628   |                  |  |  | 414,430   |  
|Financial assets designated to fair value through profit and loss                |  |              | 90,103      |   |                    |  | -           |                  |  |  | -         |  
|Other assets                                                                     |  |              | 684,549     |   |                    |  | 496,948     |                  |  |  | 122,773   |  
|                                                                                 |  |              | 16,778,287  |   |                    |  | 12,012,364  |                  |  |  | 1,020,029 |  
|Monetary liabilities -                                                           |  |              |             |   |                    |  |             |                  |  |  |           |  
|Deposits and obligations                                                         |  |              | (9,282,891  | ) |                    |  | (8,718,597  | )                |  |  | (702,359  | )
|Due to bank and correspondents and borrowed funds                                |  |              | (1,755,816  | ) |                    |  | (304,204    | )                |  |  | -         |  
|Technical reserves, insurance claims reserves and reserves for unearned premiums |  |              | (994,522    | ) |                    |  | (383,776    | )                |  |  | -         |  
|Bonds and subordinated notes issued                                              |  |              | (3,491,135  | ) |                    |  | (474,387    | )                |  |  |           |  
|Other liabilities                                                                |  |              | (728,792    | ) |                    |  | (381,619    | )                |  |  | (52,055   | )
|                                                                                 |  |              | (16,253,156 | ) |                    |  | (10,262,583 | )                |  |  | (754,414  | )
|                                                                                 |  |              | 525,131     |   |                    |  | 1,749,781   |                  |  |  | 265,615   |  
|Forwards position, net                                                           |  |              | 339,606     |   |                    |  | (346,262    | )                |  |  | 6,656     |  
|Currency swaps position, net                                                     |  |              | (167,263    | ) |                    |  | 167,263     |                  |  |  | -         |  
|Cross-currency swaps position, net and interest rate swaps position, net         |  |              | (197,659    | ) |                    |  | 82,226      |                  |  |  | 115,433   |  
|Options                                                                          |  |              | 3,269       |   |                    |  | (3,269      | )                |  |  | -         |  
|Net monetary position                                                            |  |              | 503,084     |   |                    |  | 1,649,739   |                  |  |  | 387,704   |  



|2010                                                                             |  | U.S. Dollars |             |   | Peruvian currency |  |            | Other currencies |  |  | Total    |  
|-------------------------------------------------------------------------------- |  | ------------ | ----------- | - | ----------------- |  | ---------- | ---------------- |  |  | -------- | -
|                                                                                 |  | US$(000)     |             |   | US$(000)          |  |            | US$(000)         |  |  | US$(000) |  
|                                                                                 |  |              |             |   |                   |  |            |                  |  |  |          |  
|Monetary assets -                                                                |  |              |             |   |                   |  |            |                  |  |  |          |  
|Cash and due from banks                                                          |  |              | 3,555,965   |   |                   |  | 4,747,802  |                  |  |  | 240,648  |  
|Trading securities                                                               |  |              | 59,020      |   |                   |  | 56,548     |                  |  |  | -        |  
|Available-for-sale investments                                                   |  |              | 2,162,738   |   |                   |  | 1,223,339  |                  |  |  | 382,171  |  
|Loans, net                                                                       |  |              | 8,356,316   |   |                   |  | 5,260,816  |                  |  |  | 342,523  |  
|Financial assets designated to fair value through profit and loss                |  |              | 179,055     |   |                   |  | -          |                  |  |  | -        |  
|Other assets                                                                     |  |              | 435,766     |   |                   |  | 534,057    |                  |  |  | 14,382   |  
|                                                                                 |  |              | 14,748,860  |   |                   |  | 11,822,562 |                  |  |  | 979,724  |  
|Monetary liabilities -                                                           |  |              |             |   |                   |  |            |                  |  |  |          |  
|Deposits and obligations                                                         |  |              | (9,135,298  | ) |                   |  | (8,051,953 | )                |  |  | (630,867 | )
|Due to bank and correspondents and borrowed funds                                |  |              | (1,966,845  | ) |                   |  | (273,366   | )                |  |  | (109     | )
|Technical reserves, insurance claims reserves and reserves for unearned premiums |  |              | (892,998    | ) |                   |  | (303,325   | )                |  |  | -        |  
|Bonds and subordinated notes issued                                              |  |              | (2,307,392  | ) |                   |  | (550,014   | )                |  |  | (124,512 | )
|Other liabilities                                                                |  |              | (778,953    | ) |                   |  | (378,935   | )                |  |  | (66,339  | )
|                                                                                 |  |              | (15,081,486 | ) |                   |  | (9,557,593 | )                |  |  | (821,827 | )
|                                                                                 |  |              | (332,626    | ) |                   |  | 2,264,969  |                  |  |  | 157,897  |  
|Forwards position, net                                                           |  |              | 956,279     |   |                   |  | (951,426   | )                |  |  | (4,853   | )
|Currency swaps position, net                                                     |  |              | (222,854    | ) |                   |  | 222,854    |                  |  |  | -        |  
|Cross-currency swaps position, net and interest rate swaps position, net         |  |              | (252,912    | ) |                   |  | 129,050    |                  |  |  | 123,862  |  
|Options                                                                          |  |              | 25,561      |   |                   |  | (25,561    | )                |  |  | -        |  
|Net monetary position                                                            |  |              | 173,448     |   |                   |  | 1,639,886  |                  |  |  | 276,906  |  



136







We manage foreign
exchange risk by monitoring and controlling the position values due to changes in exchange rates. We measure its performance in
U.S. Dollars, 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 our 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. Dollar 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 we had significant exposure as of December 31, 2011 and
2010 on our non-trading monetary assets and liabilities and our forecasted 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 our consolidated income
statement, while a positive amount reflects a net potential increase:



|Sensitivity Analysis |  | Change in 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  |          | 



ITEM 12.         DESCRIPTION
OF SECURITIES OTHER THAN EQUITY SECURITIES



Not applicable.



137







PART II



ITEM 13.         DEFAULTS,
DIVIDEND ARREARAGES AND DELINQUENCIES



(A)         Material
Defaults



Neither we, nor any
of our subsidiaries, have ever defaulted on any of our debt or have ever been forced to reschedule any of our obligations.



(B)         Dividend
Arrearages and Delinquencies



None.



ITEM 14.         MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS



None.



ITEM 15.         CONTROLS
AND PROCEDURES



(A)         Disclosure
Controls and Procedures



Our management, with
the participation of and under the supervision of our principal executive officer and principal financial officer, has evaluated
the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) as of December 31, 2011. Based on this evaluation, our management, principal executive officer, and principal financial
officer have concluded that our disclosure controls and procedures are effective in ensuring that information that we are required
to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the
time periods specified in U.S. Securities and Exchange Commission (SEC) rules and forms.



(B)         Management’s
Annual Report on Internal Control over Financial Reporting



Our Board of Directors
and management are responsible for establishing and maintaining adequate internal control over financial reporting. Our internal
control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation and fair presentation of published financial statements in accordance with International Financial Reporting
Standards, or IFRS, as issued by the International Accounting Standards Board, the IASB.



Our internal control
over financial reporting includes policies and procedures that:



| | • | Pertain to the maintenance of
                                                                  records that, in reasonable detail, accurately and fairly reflect
                                                                  transactions and dispositions of assets;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



138







| | • | Provide reasonable assurance
                                                                  that transactions are recorded as necessary to permit preparation
                                                                  of financial statements, and our receipts and expenditures are
                                                                  being made only in accordance with authorizations of our management
                                                                  in accordance with IFRS; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Provide reasonable assurance
                                                                  regarding prevention or timely detection of unauthorized acquisition,
                                                                  use, or disposition of our assets that could have a material
                                                                  effect on our financial statements.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Because of its inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions
or that the degree of compliance with the policies or procedures may deteriorate.



Our management assessed
the effectiveness of our internal control over financial reporting as of December 31, 2011 based on the criteria set forth by
the Committee of Sponsoring Organizations of the Treadway Commission, or COSO, in Internal Control-Integrated Framework. Based
on this assessment, our management concluded that, as of December 31, 2011, our internal control over financial reporting was
effective. Our management also found no material weaknesses in our internal control over financial reporting and therefore no
corrective actions were taken.



The effectiveness
of our internal control over financial reporting as of December 31, 2011 has been audited by Medina, Zaldívar, Paredes
& Asociados (member firm of Ernst & Young Global), our independent registered public accounting firm, as stated in their
report included herein, and it has expressed an unqualified opinion on the effectiveness of our internal control over financial
reporting as of December 31, 2011.



(C)         Attestation
Report of the Registered Public Accounting Firm



To the Shareholders
and Board of Directors of Credicorp Ltd.



We have audited Credicorp
Ltd. and Subsidiaries (hereinafter “Credicorp”) 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 (the COSO criteria). Credicorp’s management is responsible for maintaining effective internal control
over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in
the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion
on the Credicorp’s internal control over financial reporting based on our audit.



We conducted our audit
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 effective internal control over financial
reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.



A company’s
internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material
effect on the financial statements.



139







Because of its inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.



In our opinion, Credicorp
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on the
COSO criteria.



We also have audited,
in accordance with the standards of the Public Company Accounting Oversight Board (United States of America), the 2011 consolidated
financial statements of Credicorp and our report dated April 24, 2012, expressed an unqualified opinion thereon.



|Lima, Perú,                | 
|-------------------------- | 
|April 24, 2012             | 
|                           | 
|Countersigned by:          | 
|                           | 
|/S/ CRISTIAN EMMERICH      | 
|                           | 
|Cristian Emmerich          | 
|C.P.C.C. Register No19-289 | 



(D)         Changes
in Internal Control over Financial Reporting



During the period
covered by this Annual Report, no changes were made to our internal control over financial reporting that have materially affected,
or are likely to materially affect, internal control over financial reporting.



ITEM 15T.           CONTROLS
AND PROCEDURES



Not applicable.



140







ITEM 16A.           AUDIT
COMMITTEE FINANCIAL EXPERT



In its session
held on May 25, 2011, our Board of Directors elected Mr. Juan Carlos Verme as member of the Audit Committee, replacing Mr.
Reynaldo Llosa, who finished the statutory limit for being a member of the Audit Committee. In its session held on July 12,
2011, the Audit Committee elected Mr. Raimundo Morales as the Chairman. Mr. Suárez was elected as the Audit Committee
Financial Expert, as that term is defined in the instructions to Item 16A of Form 20-F, by the Board of Directors in its
session held on March 31, 2009 and Mr. Benedicto Cigüeñas, Director of BCP, was elected as an advisor.



Our Board of Directors
also determined that Mr. Morales, Mr. Suárez and Mr. Verme are “independent” as defined in Rule 10A-3 under
the Exchange Act and in Section 303A.02 of The NYSE Listed Company Manual. Mr. Suárez, our Audit Committee Financial Expert
is an economist, and received his Masters degree in economics from Columbia University. Mr. Suárez became a director on
March 31, 2005. Mr. Suárez was President and Chairman of the Board of Banco Central de Reserva del Perú from 1992
to 2001, and serves as director on the board of directors of various other companies, among which is Compañía de
Minas Buenaventura S.A.



ITEM 16B.           CODE
OF ETHICS



We have adopted a
code of ethics (Código de Etica) that is applicable to our Board of Directors, including our chief executive officer, chief
financial officer, and our other principal executive officers, as well as to all other employees. In addition, we have adopted
a code of ethics for professionals with financial responsibility (Código de Etica Para Profesionales con Responsibilidad
Financiera) applicable to employees with financial management responsibilities. Our code of ethics and code of ethics for professionals
with financial responsibility are available on the corporate governance section of our web site at http://www.credicorpnet.com.



ITEM 16C.           PRINCIPAL
ACCOUNTANT FEES AND SERVICES



Audit Committee
Pre-Approval Policies and Procedures



Our Audit
Committee must approve all of the services that the independent auditor provides as part of its responsibility to supervise
the auditor’s work. There are two types of approvals. The Audit Committee grants a “general approval” in
advance for a list of services that the independent auditor may provide without further approval from the Audit Committee. A
general approval is valid for 12 months from the date of approval unless the Audit Committee determines a different period
should apply. The Audit Committee is regularly informed about the services provided through the general approval process. The
Audit Committee also grants “specific approval” for services that do not have general approval on a case-by-case
basis. All of the services that do not have general approval need specific approval from the Audit Committee before any
agreement is signed with the independent auditor to provide such services. Any service that exceeds approved costs or budgets
will need specific approval from the Audit Committee. The Audit Committee has set a limit on tax fees and all other fees,
which cannot be greater than 35% of total auditor’s fees during a fiscal year. The Audit Committee may change this
limit based upon our corporate needs and the complexity of the service provided by the independent auditor. When considering
granting any type of approval, the Audit Committee takes into account whether the requested services are consistent with the
SEC’s rules regarding the independence of the independent auditors.



141







Our audit committee
supervises the execution of the independent audit services as necessary. It approves, when necessary, any modification in the
terms, conditions, fees, and extent of the audit services. The Audit Committee may give a general approval for other audit services
where the independent auditor is in the best position to provide those services. Such services typically include: audit services
required by regulations, financial audits for our subsidiaries or affiliates, and services associated with the presentation of
documents to the SEC or other documents published in connection with the trading of our shares.



The Audit Committee
may award a general approval to audit-related services if the committee believes that these services will not negatively affect
the integrity of the independent auditor and are consistent with SEC rules.



Consistent with SEC
rules, our audit committee requires that all tax services provided by the independent auditors be subject to its approval. The
Audit Committee may grant a specific approval for other services provided by the independent auditor as long as they do not impair
the independence of the independent auditor and are permissible under SEC rules.



Each year the Audit
Committee recommends the appointment of an independent auditor for consideration of our shareholders at the Annual General Shareholders’
Meeting. At our Annual General Shareholders’ Meeting held on March 30, 2012, Medina, Zaldívar, Paredes & Asociados
was reelected as our external auditor for the financial year 2011. This designation was made in accordance with the proposal and
recommendation of the Audit Committee, as authorized by the Board of Directors. The Board also delegated the duty of approving
the auditor’s fees to the Audit Committee.



The following table
sets forth, for each of the years indicated, the fees paid to our independent auditor, Medina, Zaldívar, Paredes &
Asociados, a member of Ernst & Young Global, for the audit of our financial statements for the years ended December 31, 2009,
2010 and 2011.



|                |  | Years ended December 31,    |      
|--------------- |  | --------------------------- | -----
|                |  | 2009                        |      
|                |  | (U.S. Dollars in thousands) |      
|                |  |                             |      
|Audit           |  | US$                         | 2,436
|Audit – Related |  |                             | -    
|Tax             |  |                             | 69   
|All Other       |  |                             | 287  
|Total           |  | US$                         | 2,792



Audit Fees correspond
to audit services performed (i) reviewing Credicorp’s consolidated financial statements and its subsidiaries, (ii) establishing
the procedures that the independent auditor needs to perform in order to form an opinion about Credicorp’s consolidated
financial statements, and (iii) complying with the statutory requirements applicable to Credicorp’s subsidiaries. Audit
fees also include expenses related to the audit work in connection with reviews of interim financial information and comfort letter
issued. All fees were approved by the Audit Committee.



Audit-Related Fees
relate to services that are similar to the execution of an audit or a review of Credicorp’s financial statements and which
are traditionally performed by the independent auditor. Such audit-related services include: assistance in the understanding of
new accounting and financial rules established by regulatory entities; audit related procedures on accounting matters; due diligence;
and special audit reviews of internal control procedures, certain training courses and permitted advisory services related with
IT systems. All fees were approved by the Audit Committee.



Tax Fees relate to
tax services which include all services performed by Credicorp’s independent auditor’s tax personnel, except those
services specifically related to the review and preparation of Credicorp’s financial statements, and consisting principally
of tax compliance and advisory services approved by the Audit Committee.



142







All Other Fees mainly
corresponded to advisory services provided by the independent auditors related to control review over revenue processes for the
years 2010 and 2011. All Other Fees mainly included expenses related to derivative operations and advisory in 2009.



The Audit Committee,
in its session held on April 5, 2011, provided a waiver to permit the independent auditors to exceed the aforementioned 35% limit
as a result of the fees we paid for the project “Control review over revenue processes” for BCP. This project represented
the largest portion of the item “All Other” included in the table presented above for 2011. As a result, the “Tax”
and “All Other” fees represented 38.1% of the total auditor’s fees for the financial year 2011. The waiver approved
by the Audit Committee applies only to total auditor’s fees for the fiscal year 2011; hence, audit fees to be paid in 2012
will be subject to the aforementioned 35 percent limit.



ITEM 16D.           EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES



Not applicable.



ITEM 16E.           PURCHASES
OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS



During 2011 our affiliates,
Prima AFP, Atlantic Security Bank, Credifondo, and Credibolsa did make purchases in open-market transactions on behalf of our
clients as part of their core businesses. Furthermore, the following purchases were made to cover the 2011’s supplementary
senior management remuneration plan, as explain in notes 3(w)(ii) and 18(b) of the financial statements.



|Period     |  | (a) Total Number of Shares (or
    Units) Purchased (1) |         |  | (b) Average Price Paid per Share
    (or Units) |     |       | (c) Total Number of Shares (or
    Units) Purchased as Part of Publicly Announced Plans or Programs |  |  | (d) Maximum Number (or
    Approximate Dollar Value) of Shares ( or Units) that May Yet Be
    Purchased Under the Plans or Programs | 
|---------- |  | ------------------------------------------------------- | ------- |  | ----------------------------------------------- | --- | ----- | --------------------------------------------------------------------------------------------------- |  |  | ------------------------------------------------------------------------------------------------------------------------------------ | 
|March 2011 |  |                                                         | 164,337 |  |                                                 | US$ | 99.97 |                                                                                                     |  |  |                                                                                                                                      | 



ITEM 16F.           CHANGE
IN REGISTRANT’S CERTIFYING ACCOUNTANT



Not applicable.



ITEM 16G.           CORPORATE
GOVERNANCE



(A)         New
York Stock Exchange – Corporate Governance



The NYSE’s corporate
governance rules, codified in Section 303A of the NYSE’s Listed Company Manual, apply, with certain limited exceptions,
in full to companies listing common equity securities. The chart below provides a brief description of the significant differences
between our corporate governance practices and those followed by U.S. companies under NYSE listing standards:



143









|Section of NYSE Listed Company Manual |  | NYSE Corporate Governance Rules for U.S. Domestic Issuers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Credicorp Corporate Governance Practices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|303A.01                               |  | A majority of the members of the board of directors must be “independent directors”, as defined by the NYSE.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Credicorp is not required under Bermuda Law to maintain a board of directors with a majority
    of independent directors; however, a majority of our directors are independent according to our definition of
    “independence”, as set forth below.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|303A.02                               |  | A director cannot be “independent” unless the board
        of directors affirmatively determines that the director has no material relationship with the listed company. In addition, a director
        is not independent if the director:
        
        ·      is,
        or has been within the last three years, an employee of the listed company, or an immediate family member is, or has been
        within         the last three years, an executive officer, of the listed company
        ·      has
        received, or has an immediate family member who has received, during any twelve-month period within the last three years, more
        than $120,000 in direct compensation from the listed company, other than director and committee fees and pension or other forms
        of deferred compensation for prior service
        ·      (a)
        is a current partner or employee of a firm that is the listed company's internal or external auditor; (b) has an immediate family
        member who is a current partner of such a firm; (c) has an immediate family member who is a current employee of such a firm and
        personally works on the listed company's audit; or (d) was, or an immediate family member was, within the last three years a partner
        or employee of such a firm and personally worked on the listed company's audit within that time
        ·      is,
        or has been with the last three years, employed as an executive officer of another company where any of the listed company's present
        executive officers at the same time serves or served on that company’s compensation committee
        ·      is
        a current employee, or an immediate family member is a current executive officer, of a company that has made payments to, or received
        payments from, the listed company for property or services in an amount which, in any of the last three fiscal years, exceeds the
        greater of $1 million, or 2% of such other company's consolidated gross revenues. |  | Credicorp has adopted an “independence” standard
        that is different than the standard established by the NYSE. Credicorp’s independence standard incorporates the SEC’s
        minimum independence requirements applicable to directors serving on audit committees. The definition of independence is included
        in Credicorp’s Corporate Governance Policy. There is no similar requirement under Bermuda law.
        
        Under our definition, a Director shall be deemed to be independent
        if he/she meets each of the following conditions:
        • He/she has no material relationship(1) with
        Credicorp(2).
        • He/she is not and has not been an employee of Credicorp(2)
        during the last twelve months.
        • He/she does not have an immediate family member(3)
        who is currently a senior executive(4) of Credicorp(2).
        • He/she has not received during the last twelve months,
        more than US$150,000 from Credicorp(2), as direct compensation, other than his/her compensation as Director or as a
        member of a committee designated by the Board of Directors.
        • He/she does not have an immediate family member(3)
        that has received during the last twelve months, more than US$150,000 from Credicorp(2).
        • He/she is not a current partner or employee of Credicorp’s(2)
        current external auditing firm.
        • He/she does not have an immediate family member(3)
        who is a partner of Credicorp’s(2) current external auditing firm, or an employee of Credicorp’s(2)
        current external auditing firm and who is directly involved in the audit of Credicorp(2).
        • For the last twelve months, neither he/she nor any immediate
        family member(3) has been a partner or an employee of Credicorp’s(2) current external auditing firm
        and been directly involved in the audit of Credicorp(2).
        • Neither he/she nor any immediate family member(3)is, or has been within the last twelve months, a senior executive of any company not affiliated to Credicorp(2)where
        any current senior executive(4) of Credicorp(2) is or has been, at the same time, a member of the Compensation
        Committee of such company.



144







|        |  |                                                                                                                                                                                         |  | • He/she is not a current employee, and none of his/her
        immediate family members(3) is a current senior executive, of any company not affiliated to Credicorp(2)
        that has made payments to, or received from, Credicorp(2) for property or services in an amount which, in any of the
        last twelve months, totals over US$ 1 million in one year, or which may represent 10% or more of the consolidated gross revenue
        of such company in one year.
        • He/she cannot, directly or indirectly, accept any consulting,
        advisory or other compensatory fee from Credicorp(2) (other than (i) in his or her capacity as a member of the Audit
        Committee, the Board of Directors, or any other board committee ii) approved by the Board of Directors and less than US$150,000
        during the last twelve months or (iii) any fixed amounts of compensation under a retirement plan for prior service with Credicorp(2))
        • He/she is not an affiliate(5) of Credicorp(2),
        an executive officer of an affiliate, an employee of an affiliate, a general partner of an affiliate or a managing member of an
        affiliate.
        
        (1)Material
        Relationship: A material relationship may occur if a person has a direct relationship with Credicorp or if a person is a partner
        or shareholder holding more than 4% of Credicorp’s capital stock, or officer of an organization that has a relationship with
        Credicorp.
        (2)Credicorp:
        Includes Credicorp and its subsidiaries.
        (3)Immediate
        Family Member: Up to the second degree of consanguinity or second degree of affinity.
        (4)Senior
        Executive: An executive officer of Credicorp (holding), or General Manager or Central Manager of BCP, or General Manager of any
        of its other subsidiaries.
        (5)Affiliate:
        A person or entity that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under
        common control with Credicorp.
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |  |                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|303A.03 |  | Non-management directors of a listed company must meet at regularly scheduled executive sessions without management.                                                                    |  | Credicorp is not required by Bermuda law to hold regular meetings of the board of directors at which only independent directors are present.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        |  |                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|303A.04 |  | Listed companies must have a nominating/corporate governance committee composed entirely of independent directors, with a written charter that addresses specific minimum requirements. |  | Credicorp has established a Nominations Committee and a Corporate Governance Committee. The minimum requirements and procedures to be followed by each committee are set forth in Credicorp’s corporate governance policy.  Credicorp has defined the charter for the Corporate Governance Committee and the charter for the Nominations Committee is under elaboration.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  





145







|        |  |                                                                                                                                                                                                                                                                                                                                                                                                           |  | Although these committees are not required by law to be composed
        entirely of independent directors (as defined by the NYSE), under Credicorp’s current Corporate Governance Policy:
        ·      the
        Nominations Committee must consist of at least three directors of Credicorp or its subsidiaries; and
        ·      the
        Corporate Governance Committee must be composed of at least three directors of Credicorp or its subsidiaries, and at least one
        of them must be independent (as determined by Credicorp).
        
        There is no similar requirement under Bermuda law.                                                                                                                                                            
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|303A.05 |  | Listed companies must have a compensation committee composed entirely of independent directors, with a written charter that addresses specific minimum requirements.                                                                                                                                                                                                                                      |  | Under Bermuda law, compensation of executive officers need not
        be determined by an independent committee. However, Credicorp has established a Compensation Committee that reviews and approves
        the compensation and benefits for Credicorp’s executive officers and other key executives of Credicorp and its subsidiaries.
        The Committee must consist of at least three directors of Credicorp or its subsidiaries and BCP’s CEO. Although the Compensation
        Committee does not currently have a separate charter, Credicorp’s Corporate Governance Policy establishes minimum requirements
        for the committee, and provide that the committee must consist of at least three directors of Credicorp or its subsidiaries and
        BCP’s CEO.
|303A.06 |  | Listed companies must have an audit committee that satisfies the requirements of Rule 10A-3 under the Exchange Act.                                                                                                                                                                                                                                                                                       |  | Credicorp has an audit committee that satisfies the requirements of Rule 10A-3 under the Exchange Act. There is no similar requirement under Bermuda law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|303A.07 |  | Listed companies must have an audit committee with at least three members, and all members of the committee must satisfy the “independence” requirements set forth in Section 303A.02 of the NYSE Listed Company Manual (described above).  The audit committee must also have a written charter that addresses specific minimum requirements, and listed companies must have an internal audit function. |  | In accordance with NYSE rules, Credicorp has formed an Audit Committee responsible for advising the board regarding the selection of independent auditors and evaluating Credicorp’s internal controls. Credicorp’s Audit Committee has three members and the members comply with the NYSE’s standards of independence for domestic issuers.  Credicorp’s board of directors has adopted an audit committee charter. There is no similar requirement under Bermuda law.                                                                                                                                                                                                                                                                                                                
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|303A.08 |  | Shareholders must be given the opportunity to vote on equity-compensation plans and material revisions thereto, with limited exemptions set forth in the NYSE rules.                                                                                                                                                                                                                                      |  | Under Bermuda law, Credicorp is not required to obtain shareholder
        consent prior to adopting share compensation plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|303A.09 |  | Listed companies must adopt and disclose corporate governance guidelines addressing specific minimum requirements.                                                                                                                                                                                                                                                                                        |  | Under Bermuda law, Credicorp is not required to adopt corporate governance guidelines, but Credicorp has adopted a set of corporate governance guidelines.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



146







|303A.10 |  | Listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers.                                                                                                                                                                                                                                                                                                         |  | Under Bermuda law, Credicorp is not required to adopt a code of business conduct. However, Credicorp has adopted and published a Code of Ethics for directors, officers and employees and has adopted a Code of Ethics for professionals with financial responsibility. Both codes are published in Credicorp’s website (www.credicorpnet.com)
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                                                                                                                                                                                                                                                                                                                               
|303A.12 |  | Each listed company must submit an executed written affirmation annually to the NYSE.  Each listed company CEO must (i) certify to the NYSE each year that he or she is not aware of any violation by the listed company of NYSE corporate governance listing standards, qualifying the certification to the extent necessary and (ii) promptly notify the NYSE in writing after any executive officer of the listed company becomes aware of any non-compliance with any applicable provisions of Section 303A. |  | As a NYSE listed company, Credicorp must submit an executed written affirmation annually to the NYSE, and its CEO must promptly notify the NYSE in writing after any executive officer of Credicorp becomes aware of any non-compliance with any applicable provisions of Section 303A. There is no similar requirement under Bermuda law.    



(B)         Bermuda
Law – Corporate Governance



We are a company incorporated
under the laws of Bermuda and are subject to Bermuda laws related to corporate governance. Under Bermuda law, there are no statutory
requirements with respect to the independence of our board of directors, meetings of non-management directors, the establishment
and composition of certain committees or the adoption and disclosure of corporate governance guidelines or codes of business conduct
and ethics. Certain Bermuda common law and statutory provisions, however, relate to duties and obligations of a company and its
directors that are similar to some of the duties and obligations arising from the provisions of Section 303A.



(1)        Fiduciary
Duties and Duties of Skill and Care Under Bermuda Law



Under section 97(1)
of the Companies Act 1981 of Bermuda, as amended (also referred to as the Companies Act), every director and officer of a company
must act honestly and in good faith with a view to the best interests of the company (often referred to as a “fiduciary
duty”) and must exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances
(often referred to as a “duty of skill and care”).



Fiduciary Duty



Under the common law,
the fiduciary duty of directors has four aspects which may be briefly summarized as follows:



| | • | A duty to act honestly and in
                                                                  good faith. A director has a duty to act honestly and in good
                                                                  faith in what he considers are the best interests of the company
                                                                  and not for any collateral purpose. The courts allow the director
                                                                  wide discretion in determining this, interfering only if no
                                                                  reasonable director could have believed that a course of action
                                                                  was in the best interests of the company. However, a director
                                                                  acting honestly, but not in the best interests of the company,
                                                                  is in breach of such duty.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | A duty to exercise powers for
                                                                  a proper purpose. Directors must act within the powers set out
                                                                  in the company’s memorandum of association and bye-laws
                                                                  and exercise their powers in the company’s interests and
                                                                  for the purposes for which those powers were conferred. Even
                                                                  if the directors are acting in good faith in the interests of
                                                                  the company as a whole, they must still use their powers for
                                                                  the purposes for which they were intended. For example, in general
                                                                  directors are not allowed to exercise their powers in such a
                                                                  way as to prevent a majority of the members from exercising
                                                                  their rights.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



147







| | • | A duty to avoid conflicts of
                                                                  interest. A director must not put himself in a position where
                                                                  there is an actual or potential conflict between a personal
                                                                  interest and his duty to the company. However, a director may
                                                                  enter into a contract where a conflict of interest might arise
                                                                  if the bye-laws allow it or the company gives its approval in
                                                                  a general meeting. Our bye-laws do not prohibit a director from
                                                                  entering into a contract where a conflict of interest may arise,
                                                                  but they do prohibit a director from voting with respect to
                                                                  any contract or proposed contract or arrangement in which such
                                                                  director is interested or with which such director has a conflict
                                                                  of interest. In addition, section 97(4) of the Companies Act
                                                                  requires our directors and officers to disclose at the first
                                                                  opportunity any interest in a material contract, proposed material
                                                                  contract or person that is a party to a material contract or
                                                                  proposed material contract with us or any of our subsidiaries.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | A duty not to appropriate, divert
                                                                  or personally profit from corporate opportunities. Unless the
                                                                  bye-laws specifically provide otherwise, a director’s
                                                                  fiduciary position precludes him from appropriating, diverting
                                                                  or taking a personal profit from any opportunities that result
                                                                  from the directorship. Our bye-laws do provide an exception
                                                                  to this rule. They provide that any director, any director’s
                                                                  firm or partner, or any company with which any director is associated
                                                                  may act for us in a professional capacity. Such director, firm,
                                                                  partner or company will be entitled to compensation for professional
                                                                  services as if the director were not a member of our board of
                                                                  directors. However, such director, firm, partner or company
                                                                  may not act as our auditor.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Duty of Skill and
Care



Under the common law,
the duty of skill and care has three aspects which may be briefly summarized as follows:



| | • | Degree of Skill. A director
                                                                  need not exhibit in the performance of his duties a greater
                                                                  degree of skill than may reasonably be expected from a person
                                                                  of like knowledge and experience.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | A director is not expected to
                                                                  exercise a level of skill he does not have. The level of skill
                                                                  required of a director is subjective, in that the director is
                                                                  not expected, merely by virtue of the office, to possess any
                                                                  particular skills. Performance must be judged by the way the
                                                                  director applies any skills which he actually has. However,
                                                                  directors ought to acquire and maintain a sufficient knowledge
                                                                  and understanding of the company’s business to enable
                                                                  them to properly discharge their duties as directors.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Attention to the Business. A
                                                                  director must diligently attend to the affairs of the company.
                                                                  In the performance of this duty, a director must at a minimum
                                                                  display the reasonable care an ordinary person would be expected
                                                                  to take in the same circumstances on his own behalf. Mere errors
                                                                  of judgment have been held not to breach the duty of skill and
                                                                  care. A director, as such, is not bound to give continuous attention
                                                                  to the affairs of the company, as his or her duties are of an
                                                                  intermittent nature.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | • | Reliance on Others. A director
                                                                  is not liable for the acts of co-directors or other company
                                                                  officers solely by virtue of the position. A director is entitled
                                                                  to rely on his co-directors or company officers as well as subordinates
                                                                  who are expressly put in charge of attending to the detail of
                                                                  management, provided such reliance is honest and reasonable
                                                                  (although a director cannot absolve himself entirely of responsibility
                                                                  by delegation to others). As a general rule, before delegating
                                                                  responsibility to others, the directors in question should satisfy
                                                                  themselves that the delegates have the requisite skills to discharge
                                                                  the functions delegated to them. In addition, the directors
                                                                  must ensure that there is set up an adequate system of monitoring
                                                                  such delegates (e.g., managers). The directors must, on a regular
                                                                  basis, ensure that their delegates have fulfilled their obligations.
                                                                  The directors should require a regular flow of information from
                                                                  the delegates to ensure that they are carrying out their duties
                                                                  satisfactorily. In addition, section 97(5A) of the Companies
                                                                  Act provides that a director shall not have breached the fiduciary
                                                                  duty or duty of skill and care required by section 97(1) if
                                                                  he relies in good faith upon financial statements of the company
                                                                  represented to him by another director or officer of the company
                                                                  or a report of an attorney, accountant, engineer, appraiser
                                                                  or other person whose profession lends credibility to a statement
                                                                  made by him.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



148







(2)         Other
Statutory Duties and Obligations



The Companies Act
imposes certain specific duties and obligations on companies and directors, both directly and indirectly, including duties and
obligations with respect to (i) loans to directors and related persons, (ii) limits on indemnities for directors and officers
and (iii) the keeping of proper books of account.



Loans to Directors
and Related Persons



It is not lawful for
a company to make a loan or to enter into a guarantee or provide security in connection with a loan to a director or certain persons
related to a director without the consent of the members of the company holding in the aggregate not less than 90% of the total
voting rights of all the members having the right to vote at any meeting of the members of the company, except in certain specific
circumstances.



Limits on Indemnity
for Directors



Section 98 of the
Companies Act provides generally that a Bermuda company may indemnify its directors, officers and auditors against any liability
which, by virtue of any rule of law, would otherwise be imposed on them with respect to any negligence, default, breach of duty
or breach of trust. However, this rule does not apply in cases where such liability arises from fraud or dishonesty of which such
director, officer or auditor may be guilty in relation to the company or any of its subsidiaries. Any provision, whether contained
in the bye-laws of a company or in any contract or arrangement between the company and one of its directors which would exempt
such director from, or indemnify him against, any liability that would otherwise attach to him with respect to his fraud or dishonesty
in relation to the company will be void. Section 98 further provides that a Bermuda company may indemnify its directors, officers
and auditors against any liability incurred by them in defending any proceedings, whether civil or criminal, in which judgment
is awarded in their favor or in which they are acquitted or granted relief by the Supreme Court of Bermuda pursuant to section
281 of the Companies Act. In the event that an allegation of fraud or dishonesty is made out, the director is obliged to disgorge
any money provided for his defense.



Books of Account



It is the duty of
the directors to cause to be kept proper books of account with respect to all sums of money received and expended by the company
and the matters with respect to which the receipts and expenditures take place, all sales and purchases by the company, and the
assets and liabilities of the company.



(C)         Peruvian
Law – Corporate Governance



Although we are a
holding company whose principal subsidiaries (Grupo Credito, BCP, and Grupo Pacífico) are incorporated under and subject
to the laws of Peru, we are registered in Peru as a foreign issuer and are consequently only subject to Peruvian regulations applicable
to foreign issuers. There are no corporate governance provisions under Peruvian law applicable to us that are similar to the provisions
of Section 303A.



149







PART III



ITEM 17.         FINANCIAL
STATEMENTS



Not applicable.



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



150











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



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







|1.1  | Bye-laws of Credicorp Ltd., incorporated herein by reference to Exhibit 1.1 to Credicorp’s Annual Report on Form 20-F dated June 30, 2005                 
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                           
|1.2  | Memorandum of Association of Credicorp Ltd., incorporated herein by reference to Exhibit 1.2 to Credicorp’s Annual Report on Form 20-F dated June 27, 2003
|     |                                                                                                                                                           
|8    | List of Subsidiaries, incorporated herein by reference to Exhibit 8 to Credicorp’s Annual Report on Form 20-F dated June 27, 2003                         
|     |                                                                                                                                                           
|12.1 | Certification by the Chief Executive Officer Pursuant to Section 302 of the U.S. Sarbanes-Oxley Act of 2002                                               
|     |                                                                                                                                                           
|12.2 | Certification by the Chief Financial Officer Pursuant to Section 302 of the U.S. Sarbanes-Oxley Act of 2002                                               
|     |                                                                                                                                                           
|13.1 | Certification by the Chief Executive Officer Pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002                                               
|     |                                                                                                                                                           
|13.2 | Certification by the Chief Financial Officer Pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002                                               



151







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: April 27, 2012 |                        



152









EXHIBIT INDEX



|1.1  | Bye-laws of Credicorp Ltd., incorporated herein by reference to Exhibit 1.1 to Credicorp’s Annual Report on Form 20-F dated June 30, 2005                 
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                           
|1.2  | Memorandum of Association of Credicorp Ltd., incorporated herein by reference to Exhibit 1.2 to Credicorp’s Annual Report on Form 20-F dated June 27, 2003
|     |                                                                                                                                                           
|8    | List of Subsidiaries, incorporated herein by reference to Exhibit 8 to Credicorp’s Annual Report on Form 20-F dated June 27, 2003                         
|     |                                                                                                                                                           
|12.1 | Certification by the Chief Executive Officer Pursuant to Section 302 of the U.S. Sarbanes-Oxley Act of 2002                                               
|     |                                                                                                                                                           
|12.2 | Certification by the Chief Financial Officer Pursuant to Section 302 of the U.S. Sarbanes-Oxley Act of 2002                                               
|     |                                                                                                                                                           
|13.1 | Certification by the Chief Executive Officer Pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002                                               
|     |                                                                                                                                                           
|13.2 | Certification by the Chief Financial Officer Pursuant to Section 906 of the U.S. Sarbanes-Oxley Act of 2002                                               



153