OTHER ASSETS AND OTHER LIABILITIES

12 Months Ended

Dec. 31, 2022

OTHER ASSETS AND OTHER LIABILITIES [Abstract]

13	OTHER ASSETS AND OTHER LIABILITIES

This item consists of the following:

	2022		2021
	S/(000)		S/(000)
Other assets -
Financial instruments:
Receivables (b)		1,457,566		1,524,407
Derivatives receivable (c)		1,478,726		1,661,628
Operations in process (d)		155,568		195,875
Receivables from sale of investments (e)		142,765		89,149
		3,234,625		3,471,059

Non-financial instruments:
Deferred fees (f)		966,567		967,622
Investment in associates (g)		726,993		658,697
Investment properties, net (h)		548,558		469,113
Income tax prepayments, net		186,372		436,961
Adjudicated assets, net		136,079		136,125
Improvements in leased premises		71,747		65,867
VAT (IGV) tax credit		58,329		50,120
Others		9,245		9,241
		2,703,890		2,793,746
Total		5,938,515		6,264,805

	2022		2021
	S/(000)		S/(000)
Other liabilities -
Financial instruments:
Accounts payable (i)		2,112,024		2,045,845
Derivatives payable (c)		1,345,665		1,524,761
Salaries and other personnel expenses		977,921		825,000
Allowance for indirect loan losses, Note 7(c)		658,584		593,703
Accounts payable for acquisitions (e)		153,681		253,444
Operations in process (d)		89,480		51,763
Dividends payable		73,607		76,097
		5,410,962		5,370,613
Non-financial instruments:
Provision for sundry risks (j)		624,149		614,012
Taxes		1,062,690		337,511
Others		192,344		211,661
		1,879,183		1,163,184
Total		7,290,145		6,533,797

As of December 31, 2022, the balance corresponds mainly comprises funds restricted by the Central Reserve Bank of Bolivia for S/261.3 million, margin call of operations with derivatives for S/184.4 million, taxes receivable for S/184.9 million, receivables for the sale of deferred foreign currency for S/85.9 million, works for taxes for S/69.2 million, accounts paid by third parties for S/42.3 million, receivables for the sale of goods and services for S/53.0 million, commissions receivable for S/38.7 million, advances to personnel for S/15.7 million, dividends receivable for S/2.9 million, among others. As of December 31, 2021, the balance mainly comprises the margin call of operations with derivatives for S/410.3 million, works for taxes for S/178.3 million, receivables from Visa for payments to establishments for S/111.0 million, receivables from the sale of deferred foreign currency for S/89.7 million, taxes paid on behalf of third parties and other receivables related to taxes for S/73.7 million, receivable from financial intermediation for S/27.3 million, receivable from associate for S/6.6 million, among others.

The risk in derivative contracts arises from the possibility of the counterparty does not comply with the agreed terms and conditions and that the reference rates at which the transactions took place change.

As of December 31, 2022, and 2021 the table below shows the fair value of derivative financial instruments, recorded as an asset or a liability, together with their nominal 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.

		2022							2021							2022 and 2021
		Assets		Liabilities		Nominal amount		Maturity	Assets		Liabilities		Nominal amount		Maturity	Related instruments
		S/(000)		S/(000)		S/(000)			S/(000)		S/(000)		S/(000)
Derivatives held for trading (i) -
Foreign currency forwards			500,348		288,857		34,224,865	January 2023 / August 2024		344,780		387,371		28,618,406	January 2022 / June 2023	–
Interest rate swaps			415,034		277,988		10,834,324	January 2023 / December 2032		367,906		320,186		26,878,186	January 2022 / December 2031	–
Currency swaps			410,439		749,420		16,000,208	January 2023 / January 2033		860,170		795,845		15,935,149	January 2022 / January 2033	–
Foreign exchange options			1,349		3,168		362,324	January 2023 / June 2024		2,485		3,258		576,398	January 2022 / December 2022	–
Futures			794		1,450		48,819	March 2023		19		405		72,165	March 2022 / November 2022	–
			1,327,964		1,320,883		61,470,540			1,575,360		1,507,065		72,080,304
Derivatives held as hedges (ii)
Cash flow hedges -
Cross currency swaps (CCS)	17(a)(ii)		20,114		8,418		839,080	January 2025		36,512		–		199,350	January 2025	Bonds issued
Cross currency swaps (CCS)	5(c)(i)		21,935		–		171,630	August 2026		16,972		–		179,415	August 2026	Repurchase agreements
Cross currency swaps (CCS)	17(a)(vi)		–		13,688		145,715	December 2023		–		216		173,215	December 2023	Bonds issued
Cross currency swaps (CCS)	6(b)(i)(v)		41,746		2,123		131,382	January 2023 / January 2025		19,939		4,126		154,635	January 2022 / September 2024	Investments (*)
Cross currency swaps (CCS)			–		156		38,140	June 2025		–		–		–	-	Repurchase agreements
Cross currency swaps (CCS)	5(c)(ii)		14,861		–		95,350	August 2026		12,845		–		99,675	August 2026	Repurchase agreements
Interest rate swaps (IRS)	17(a)(v)		–		–		–			–		1,076		119,610	March 2022	Bonds issued

Fair value hedges -
Interest rate swaps (IRS)	6(b)		52,106		397		926,497	January 2023 / February 2028		–		12,278		636,405	March 2022 / May 2023	Investments (*)
			150,762		24,782		2,347,794			86,268		17,696		1,562,305
			1,478,726		1,345,665		63,818,334			1,661,628		1,524,761		73,642,609

(*)

It comprises investments classified at the fair value through other comprehensive income under IFRS 9 as of December 31, 2022 and 2021.

(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:

	2022												2021
	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		276,887		226,117		(2,656)		–		–		500,348		193,678		148,219		2,883		–		–		344,780
Interest rate swaps		12,395		43,395		58,726		122,943		177,575		415,034		16,120		25,612		16,117		51,990		258,067		367,906
Currency swaps		63,465		60,940		86,950		84,650		114,434		410,439		61,522		182,002		219,240		137,046		260,360		860,170
Foreign exchange options		153		1,163		33		–		–		1,349		1,287		1,198		–		–		–		2,485
Futures		794		–		–		–		–		794		–		19		–		–		–		19
Total assets		353,694		331,615		143,053		207,593		292,009		1,327,964		272,607		357,050		238,240		189,036		518,427		1,575,360

	2022												2021
	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		203,269		85,222		366		–		–		288,857		231,022		153,550		2,799		–		–		387,371
Interest rate swaps		8,073		37,418		45,352		62,460		124,685		277,988		13,098		13,481		28,424		40,984		224,199		320,186
Currency swaps		140,363		258,962		100,267		127,404		122,424		749,420		37,410		225,813		211,630		145,507		175,485		795,845
Foreign exchange options		554		2,483		131		–		–		3,168		1,102		2,156		–		–		–		3,258
Futures		1,450		–		–		–		–		1,450		405		–		–		–		–		405
Total liabilities		353,709		384,085		146,116		189,864		247,109		1,320,883		283,037		395,000		242,853		186,491		399,684		1,507,065

(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:

	2022														2021
	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)		250,835			938,513			76,280			–		1,265,628			191,962			327,914			496,552			–		1,016,428
Cash outflows (liabilities)		(294,548	)		(934,119	)		(73,232	)		–		(1,301,899	)		(209,707	)		(338,518	)		(446,582	)		–		(994,807	)
Consolidated statement of income		397			(7,222	)		7,070			–		245			(461	)		(20	)		197			–		(284	)

As of December 31, 2022 the accumulated balance of the net unrealized result from cash flow hedges, which is presented as other comprehensive income in the caption " Cash flow hedge reserves ", results from current hedges that have an unrealized gain of approximately S/0.2 million (unrealized loss of approximately S/0.3 million for current hedges and an unrealized loss of 0.7 million for revoked hedges, as of December 31, 2021), which has been realized in the consolidated statements of income during the term of the underlying financial instrument. Likewise, the transfer of the unrealized loss of 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, 2022 and 2021, 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, 2022, the balance mainly comprises to the payment in advance in favor of Latam Airlines Group S.A. Peru Branch for US$128.0 million, equivalent to S/488.4 million, (US$113.9 million, equivalent to S/454.0 million as of December 31, 2021) 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/627.9 million and S/598.1 million as of December 31, 2022 and 2021, respectively.

Investment properties, net -

The movement of investment properties is as follows:

	2022									2021
	Land			Buildings			Total			Total
	S/(000)			S/(000)			S/(000)			S/(000)
Cost
Balance at January 1		274,769			252,166			526,935			513,918
Additions (i)		53,500			33,632			87,132			12,068
Disposals and others		(138	)		(610	)		(748	)		949
Balance at December 31		328,131			285,188			613,319			526,935

Accumulated depreciation
Balance at January 1		–			56,412			56,412			45,649
Depreciation for the period		–			7,107			7,107			7,302
Disposals and others		–			(168	)		(168	)		3,461
Balance at December 31		–			63,351			63,351			56,412

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

Net carrying amount		327,442			221,116			548,558			469,113

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

(i)

As of December 31, 2022 the Group has made disbursements for the acquisition of land and real estate for S/87.1 million. As of December 31, 2021, the Group has made disbursements for property improvements for S/12.1 million.

(ii)

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, 2022 and 2021, the market value of the properties amounts to approximately S/1,206.5 million and S/1,244.1 million, respectively; which was determined through a valuation made by an independent appraiser.

As of December 31, 2022, the balance mainly comprises payables to suppliers for S/434.6. million, payables to client investors in stock exchange for S/322.7, payables to policyholders for S/114.6 million, payables to intermediaries for S/101.1 million, payables for premiums to the deposit insurance fund for S/57.7 million, payables for foreign exchange sale for S/22.3 million, interbank operations to be settled with the BCRP for S/6.0 million, among others. As of December 31, 2021, the balance corresponds mainly comprises payables to suppliers for S/208.4 million, payables to policyholders for S/108.1 million, payables for purchase of deferred foreign currency for S/101.6 million, payables to intermediaries for S/90.0 million, payables 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, payables to an associate for S/7.4 million, among others.

The movement of the allowance for sundry risks for the years ended December 31, 2022, 2021 and 2020 was as follows:

	2022			2021		2020
	S/(000)			S/(000)		S/(000)

Balance at the beginning of the year		614,012			514,382		359,853
Allowance, Note 29		43,846			70,824		140,897
(Decrease) increase, net		(33,709	)		28,806		13,632
Balances at the end of the year		624,149			614,012		514,382

Because of the nature of its business, the Group has various pending lawsuits, which allowances 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 an allowance, 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.