OTHER ASSETS AND OTHER LIABILITIES

12 Months Ended

Dec. 31, 2021

OTHER ASSETS AND OTHER LIABILITIES [Abstract]

13	OTHER ASSETS AND OTHER LIABILITIES

This item consists of the following:

	2021		2020
	S/(000)		S/(000)
Other assets -
Financial instruments:
Receivables (b)		1,524,407		1,307,187
Derivatives receivable (c)		1,661,628		1,214,497
Operations in process (d)		195,875		245,303
Receivables from sale of investments (e)		76,852		271,066
		3,458,762		3,038,053

Non-financial instruments:
Deferred fees (f)		967,622		1,039,557
Investment in associates (g)		658,697		645,886
Investment properties, net (h)		469,113		466,859
Income tax prepayments, net		436,961		303,838
Adjudicated assets, net		136,125		135,089
Improvements in leased premises		65,867		90,146
VAT (IGV) tax credit		50,120		49,364
Others		9,241		9,198
		2,793,746		2,739,937
Total		6,252,508		5,777,990

	2021		2020
	S/(000)		S/(000)
Other liabilities -
Financial instruments:
Accounts payable (i)		2,103,062		1,788,956
Derivatives payable (c)		1,524,761		1,205,213
Salaries and other personnel expenses		825,000		591,541
Allowance for indirect loan losses, Note 7(c)		593,703		536,863
Accounts payable for acquisitions of investments (e)		241,026		260,786
Operations in process (d)		51,763		72,800
Dividends payable (j)		18,880		22,808
		5,358,195		4,478,967
Non-financial instruments:
Provision for sundry risks (k)		614,012		514,382
Taxes		337,511		293,873
Others		211,661		199,937
		1,163,184		1,008,192
Total		6,521,379		5,487,159

As of December 31, 2021, the balance corresponds mainly to margin call of derivative transactions for S/410.3 million, tax works for S/178.3 million, accounts receivable from Visa for payments to establishments for S/111.0 million, accounts receivable for sale of deferred currency for S/89.7 million, taxes paid on behalf of third parties and other tax-related accounts receivable for S/73.7 million, account receivable for financial intermediation for S/27.3 million, accounts receivable from associated companies for S/6.6 million, among others (as of December 31, 2020, the balance consisted mainly of margin call from derivative operations for S/242.3 million, tax works for S/169.8 million, account receivable from Visa for payments to establishments for S/81.1 million, taxes paid on account to third parties and other accounts receivable related to taxes for S/75.3 million, account receivable for financial intermediation for S/64.4 million, account receivable for sale of deferred currency for S/60.2 million, account receivable from associate for S/6.5 million, among others).

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 change.

The table below shows as of December 31, 2021 and 2020 the fair value of derivative financial instruments, recorded as an asset or a liability, together with their notional amounts and maturities. The nominal amount, recorded gross, is the amount of a derivative’s underlying asset and is the basis upon which the fair value of derivatives is measured.

		2021							2020							2021 and 2020
		Assets		Liabilities		Notional amount		Maturity	Assets		Liabilities		Notional amount		Maturity	Related instruments
		S/(000)		S/(000)		S/(000)			S/(000)		S/(000)		S/(000)
Derivatives held for trading (i) -
Foreign currency forwards			344,780		387,371		28,618,406	January 2022 / June 2023		256,891		257,999		22,030,623	January 2021 / October 2022	–
Interest rate swaps			367,906		320,186		26,878,186	January 2022 / December 2031		600,718		613,624		20,447,415	January 2021 / December 2031	–
Currency swaps			860,170		795,845		15,935,149	January 2022 / January 2033		323,425		181,454		9,095,243	January 2021 / January 2033	–
Foreign exchange options			2,485		3,258		576,398	January 2022 /December 2022		2,673		3,547		426,848	January 2021 / June 2021	–
Futures			19		405		72,165	March 2022 / November 2022		2,694		2,616		32,589	March 2021	–
			1,575,360		1,507,065		72,080,304			1,186,401		1,059,240		52,032,718
Derivatives held as hedges
Cash flow hedges -
Interest rate swaps (IRS)	17(a)(v)		–		1,076		119,610	March 2022		–		2,525		108,630	March 2022	Bonds issued
Interest rate swaps (IRS)	15(b)(ii)		–		–		–	–		–		315		362,100	March 2021	Debt to banks
Interest rate swaps (IRS)	17(a)(viii)		–		–		–	–		–		1,473		253,470	March 2021	Bonds issued
Interest rate swaps (IRS)	15(b)(iv)		–		–		–	–		–		72		181,050	March 2021	Debt to banks
Interest rate swaps (IRS)	15(b)(iii)		–		–		–	–		–		60		181,050	March 2021	Debt to banks
Cross currency swaps (CCS)	17(a)(ii)		36,512		–		199,350	January 2025		5,090		–		181,050	January 2025	Bonds issued
Cross currency swaps (CCS)	5(c)(i)		16,972		–		179,415	August 2026		–		29,001		162,945	August 2026	Repurchase agreements
Cross currency swaps (CCS)	5(c)(ii)		12,845		–		99,675	August 2026		–		11,797		90,525	August 2026	Repurchase agreements
Cross currency swaps (CCS)	6(b)(i)(v)		19,939		4,126		154,635	January 2022 / September 2024		18,224		74,677		487,046	January 2021 / September 2024	Investments (*)
Cross currency swaps (CCS)	17(a)(vi)		–		216		173,215	December 2023		4,782		–		175,345	August 2021	Bonds issued

Fair value hedges -
Interest rate swaps (IRS)	6(b)		–		12,278		636,405	March 2022 / May 2023		–		26,053		628,677	March 2022 / May 2023	Investments (*)
			86,268		17,696		1,562,305			28,096		145,973		2,811,888
			1,661,628		1,524,761		73,642,609			1,214,497		1,205,213		54,844,606

(*)

Corresponds to investments classified at the fair value through other comprehensive income under IFRS 9 as of December 31, 2021 and 2021.

The increase in the nominal value of currency swaps as of December 31, 2021 respect to December 31, 2020 is mainly due to new operations with the BCRP.

(i)

Held-for-trading derivatives are principally negotiated to satisfy customers’ needs. On the other hand, the Group may also take positions with the expectation of profiting from favorable movements in prices or rates. Also, this caption includes any derivatives which do not comply with IFRS 9 hedge accounting requirements. Fair value of derivatives held for trading classified by contractual maturity is as follows:

	2021												2020
	Up to 3 months		From 3 months to 1 year		From 1 to 3 years		From 3 to 5 years		Over 5 years		Total		Up to 3 months		From 3 months to 1 year		From 1 to 3 years		From 3 to 5 years		Over 5 years		Total
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
Foreign currency forwards		193,678		148,219		2,883		–		–		344,780		148,076		108,541		274		–		–		256,891
Interest rate swaps		16,120		25,612		16,117		51,990		258,067		367,906		4,025		25,005		81,209		46,101		444,378		600,718
Currency swaps		61,522		182,002		219,240		137,046		260,360		860,170		12,324		11,499		122,673		36,219		140,710		323,425
Foreign exchange options		1,287		1,198		–		–		–		2,485		379		2,294		–		–		–		2,673
Futures		–		19		–		–		–		19		2,694		–		–		–		–		2,694
Total assets		272,607		357,050		238,240		189,036		518,427		1,575,360		167,498		147,339		204,156		82,320		585,088		1,186,401

	2021												2020
	Up to 3 months		From 3 months to 1 year		From 1 to 3 years		From 3 to 5 years		Over 5 years		Total		Up to 3 months		From 3 months to 1 year		From 1 to 3 years		From 3 to 5 years		Over 5 years		Total
	S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)		S/(000)
Foreign currency forwards		231,022		153,550		2,799		–		–		387,371		145,781		111,956		262		–		–		257,999
Interest rate swaps		13,098		13,481		28,424		40,984		224,199		320,186		12,794		23,211		80,629		64,995		431,995		613,624
Currency swaps		37,410		225,813		211,630		145,507		175,485		795,845		15,122		33,147		86,265		20,344		26,576		181,454
Foreign exchange options		1,102		2,156		–		–		–		3,258		676		2,871		–		–		–		3,547
Futures		405		–		–		–		–		405		2,616		–		–		–		–		2,616
Total liabilities		283,037		395,000		242,853		186,491		399,684		1,507,065		176,989		171,185		167,156		85,339		458,571		1,059,240

(ii)

The Group is exposed to variability in future cash flows on assets and liabilities in foreign currency and/or those that bear interest at variable rates. The Group uses derivative financial instruments as cash flow hedges to cover these risks.

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

	2021														2020
	Up to 1 year			From 1 to 3 years			From 3 to 5 years			Over 5 years		Total			Up to 1 year			From 1 to 3 years			From 3 to 5 years			Over 5 years			Total
	S/(000)			S/(000)			S/(000)			S/(000)		S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)
Cash inflows (assets)		191,962			327,914			496,552			-		1,016,428			1,268,082			229,366			275,235			255,963			2,028,646
Cash outflows (liabilities)		(209,707	)		(338,518	)		(446,582	)		-		(994,807	)		(1,347,995	)		(274,482	)		(265,536	)		(236,859	)		(2,124,872	)
Consolidated statement of income		(461	)		(20	)		197			-		(284	)		(4,939	)		(5,314	)		(4,969	)		(25,891	)		(41,113	)

As of December 31, 2021, the accumulated balance of net unrealized loss from cash flow hedges, which is included as other comprehensive income in “Cash flow hedge reserves” results from the current hedges, which have an unrealized loss of approximately S/0.3 million and from the revoked hedges, which have an unrealized loss of approximately S/0.7 million (unrealized loss of approximately S/38.2 million from current hedges and unrealized loss for S/2.9 million from revoked hedges, as of December 31, 2020), which is being recognized in the consolidated statement of income over the remaining term of the underlying financial instrument. Also, the transfer of the unrealized loss on cash flow hedges to the consolidated statement of income is presented in Note 18(c).

Transactions in process include deposits received, granted and collected loans, funds transferred and other similar types of transactions, which are made in the final days of the month and not reclassified to their final accounts in the interim condensed consolidated statement of financial position until the first days of the following month. The regularization of these transactions does not affect the Group’s net income.

As of December 31, 2021 and 2020, corresponds to accounts receivable and payable for the sale and purchase of financial investments negotiated during the last days of the month, which were settled during the first days of the following month.

As of December 31, 2021, the balance corresponds mainly to the payment in advance in favor of Latam Airlines Group S.A. Perú Branch for US$113.9 million, equivalent to S/454.0 million, (US$165.1 million, equivalent to S/507.9 million as of December 31, 2020) on account of the Latam Pass Miles that the Bank has been crediting to its clients for the use of your credit and debit cards, and other financial products BCP Latam Pass. Customers can use these miles directly with Latam to exchange tickets, goods or services offered by them.

Credicorp’s principal associate is Entidad Prestadora de Salud (EPS), whose balance amounts to S/598.1 million and S/603.4 million as of December 31, 2021 and 2020, respectively.

Investment properties -

The movement of investment properties is as follows:

	2021							2020
	Own assets
	Land			Buildings		Total		Total
	S/(000)			S/(000)		S/(000)		S/(000)
Cost
Balance at January 1		263,439			250,479		513,918		491,366
Additions (i)		12,068			-		12,068		26,533
Sales (ii)		-			-		-		(233	)
Disposals and others		(738	)		1,687		949		(3,748	)
Ending Period		274,769			252,166		526,935		513,918

Accumulated depreciation
Balance at January 1		–			45,649		45,649		39,027
Depreciation for the period		–			7,302		7,302		7,018
Sales (ii)		–			-		-		(148	)
Disposals and others		–			3,461		3,461		(248	)
Ending Period		–			56,412		56,412		45,649

Impairment losses (iii)		689			721		1,410		1,410

Net carrying amount		274,080			195,033		469,113		466,859

Land and buildings are mainly used for office rental, which are free of all encumbrances.

(i)

As of December 31, 2021, in order to consolidate the real estate projects, the Group has made disbursements of improvements for S/12.1 million. Among the main disbursements is the IPAE building located in the city of Arequipa for S/5.8 million, Torre Pacifico located in Esquina Tamayo and Juan de Arona in the district of San Isidro, Lima for S/4.3 million and other minor ones for S /2.0 million. As of December 31, 2020, the main additions correspond to the acquisition of land located in the Comas district in the city of Lima for the amount of S/12.5 million. Likewise, in order to consolidate the real estate projects, the Group has made disbursements mainly for the improvements of buildings one of them located in Arequipa for the amount of S/5.1 million, the other located in Trujillo for approximately S/3.8 million and also improvements on the 13th floor of Panorama building located in the district of Santiago de Surco, Lima amounted of S/2.4 million.

(ii)

No sales have been made during the 2021. The amount for sales for the 2020 period is mainly due to the sale of a store N.112 located in the Jr. Huallaga (Lima) building, whose sale value was S/0.08 million (disposal cost amounted to S/0.09 million).

(iii)

The Group’s Management has determined that the recoverable value of its investment properties is greater than their net carrying amount.

As of December 31, 2021, the balance mainly corresponds to accounts payable to suppliers for S/208.4 million, accounts payable to policyholders for S/108.1 million, accounts payable for purchase of deferred foreign currency for S/101.6 million, accounts payable to intermediaries for S/90.0 million, accounts payable for premiums to the Deposit Insurance Fund for S/52.7 million, settlement funds of Financiera TFC for S/12.0 million, interbank operations to be settled with the BCRP for S/8.8 million, accounts payable to an associate for S/7.4 million, among others (as of December 31, 2020, the balance corresponds mainly to accounts payable to suppliers for S/215.0 million, accounts payable to policyholders for S/91.5 million, accounts payable to intermediaries for S/87.3 million, accounts payable for the purchase of deferred foreign currency for S/65.9 million, accounts payable for premiums to the Deposit Insurance Fund for S/46.4 million, interbank operations to be settled with the BCRP for S/39.6 million, Liquidation Funds of Financiera TFC for S/12.5 million, repurchase agreements to be settled for S/9.5 million, accounts payable to an associate for S/3.9 million, among others).

As of December 31, 2021, the balance corresponds mainly to S/17.3 million recorded by Banco de Crédito del Perú. As of December 31, 2020, the balance corresponds mainly to S/18.9 million recorded by Banco de Crédito del Perú.

The movement of the provision for sundry risks for the years ended December 31, 2021, 2020 and 2019 was as follows:

	2021		2020		2019
	S/(000)		S/(000)		S/(000)

Balance at the beginning of the year		514,382		359,853		342,350
Provision, Note 29		70,824		140,897		27,272
Increase (decrease), net		28,806		13,632		(9,769	)
Balances at the end of the year		614,012		514,382		359,853

Because of the nature of its business, the Group has various pending lawsuits, which provisions are recorded when, in Management’s and its in-house legal advisors opinion, it is likely that these may result in an additional liability and such amount can be reliably estimated. Regarding lawsuits against the Group which have not been recorded as a provision, in Management’s and its in-house legal advisors opinion, they will not result in an additional liability other than those recorded previously and they will not have a material effect on the Group’s consolidated financial statements.