INTANGIBLE AND GOODWILL, NET

12 Months Ended

Dec. 31, 2024

INTANGIBLE AND GOODWILL, NET [Abstract]

10	INTANGIBLE AND GOODWILL, NET

Intangible assets –

The composition of intangible assets with limited useful life and accumulated amortization as of December 31, 2024, 2023 and December 31, 2022 was as follows:

Description	Client relationships (i)			Brand name (ii)		Fund manager contract (iii)			Relationships with holders		Software and developments			Intangible in progress			Other			2024			2023			2022
	S/(000)			S/(000)		S/(000)			S/(000)		S/(000)			S/(000)			S/(000)			S/(000)			S/(000)			S/(000)

Cost -
Balance at January		375,905			175,321		77,715			21,100		4,279,022			901,562			30,754			5,861,379			5,167,235			4,708,305
Additions		-			-		-			-		423,259			378,031			-			801,290			828,803			703,670
Acquisition of business		-			-		-			-		-			-			-			-			16,642			7,533
Transfers		-			-		-			-		533,096			(533,096	)		-			-			-			-
Disposals and others		(3,896	)		-		(8,174	)		-		(68,704	)		(137,750	)		(17,708	)		(236,232	)		(151,301	)		(252,273	)
Balance as of December 31		372,009			175,321		69,541			21,100		5,166,673			608,747			13,046			6,426,437			5,861,379			5,167,235

Accumulated amortization -
Balance at January		317,231			66,315		16,373			21,100		3,002,942			-			10,401			3,434,362			3,040,019			2,795,084
Amortization of the period		17,260			6,351		3,715			-		451,372			-			4,196			482,894			436,584			403,726
Disposals and others		(2,027	)		-		(1,926	)		-		(50,764	)		-			(2,898	)		(57,615	)		(42,241	)		(158,791	)
Balance as of December 31		332,464			72,666		18,162			21,100		3,403,550			-			11,699			3,859,641			3,434,362			3,040,019

Net carrying amount		39,545			102,655		51,379			-		1,763,123			608,747			1,347			2,566,796			2,427,017			2,127,216

Management periodically reviews the residual value of intangibles, the useful life and the amortization method used in order to ensure that they are consistent with the economic benefit and life expectancy.

The Group during 2024 and 2023 made disbursements related to the implementation and development of IT projects as limited-life intangibles that include the acquisition of software, development of internal systems and improvement of technological platforms used in the Bank’s operations, such as Yape, IO virtual card application, Mobile Banking, Telecredit and others.

Due to the implementation of IFRS 17, the amortization expense of intangible assets is distributed in the consolidated statement of income under amortization and attributable expense under insurance and reinsurance income for S/420.9 million and S/62.0 million, respectively, for the year 2024; S/386.1 million and S/50.5 million, respectively, for the year 2023.

In the opinion of the Group’s Management, there is no evidence of impairment in the value of the intangibles held by the Group as of December 31, 2024, 2023 and 2022.

(i)

Client relationships -

This item consists of the following:

	2024		2023
	S/(000)		S/(000)

Prima AFP - AFP Unión Vida		20,813		32,629
Credicorp Capital Holding Chile - Inversiones IMT		10,892		13,410
Ultraserfinco		5,049		7,072
Tenpo SpA		1,011		1,264
Compañía Incubadora de Soluciones Móviles S.A.- Culqi		1,467		1,792
Joinnus		313		2,507
Net carrying amount		39,545		58,674

(ii)

Brand name -

	2024		2023
	S/(000)		S/(000)

MiBanco		99,437		105,244
Joinnus		3,155		3,457
Culqi		63		305
Net carrying amount		102,655		109,006

(iii)

Fund management contract -

	2024		2023
	S/(000)		S/(000)

Credicorp Capital Holding Chile - Inversiones IMT		23,183		29,553
Credicorp Capital Colombia		26,071		29,229
Ultrasefinco S.A.		2,125		2,560
Net carrying amount		51,379		61,342

Goodwill -

Goodwill acquired through business combinations has been allocated to each subsidiary or groups of them, which are also identified as a CGUs for the purposes of impairment testing.

	2024		2023
	S/(000)		S/(000)
MiBanco - Edyficar Perú		273,694		273,694
Prima AFP - AFP Unión Vida		124,641		124,641
Credicorp Capital Colombia		99,841		111,799
Banco de Crédito del Perú		52,359		52,359
MiBanco Colombia		44,229		49,629
Pacífico Seguros		36,354		36,354
Atlantic Security Holding Corporation		29,795		29,795
Monokera S.A.S.		22,656		22,656
Tenpo SpA		20,927		22,697
Tenpo Technologies SpA		9,945		11,719
Joinnus S.A.C.		7,824		35,700
Crediseguro Seguros Personales		96		96
Compañía Incubadora de Soluciones Móviles S.A.-Culqi		-		2,297
Wally POS S.A.C.		-		21,046
Sami Shop S.A.C.		-		4,000
Net carrying amount		722,361		798,482

The recoverable amount of all of the CGUs has been determined based in the present value of the discounted cash flows or dividends determined principally with assumptions of revenue and expenses projection (based on efficiency ratios).

Goodwill balance of Credicorp Capital Colombia S.A., Mibanco Colombia, Tenpo SPA and Tenpo Technologies SpA. is affected by the effect of the local exchange rate currency of the country in which they operate against the exchange rate of functional currency of Credicorp Ltd. and subsidiaries.

For the year 2024, the Group recorded an impairment in the following companies: Joinnus S.A. for S/12.0 million, Wally POS S.A.C for S/9.0 million, Sami Shop for S/4.0 million and Compañía Incubadora de Soluciones Móviles S.A. for S/2.3 million.

During 2023, the Group recorded an impairment of MiBanco Colombia (formerly Banco Compartir S.A) for $75,199 Colombian pesos, equivalent to S/64.1 million and S/7.8 million of minority interest. To determine this impairment, a fair value of $438,259 Colombian pesos, equivalent to US$113.2 million, and a book value of $513,458 Colombian pesos, equivalent to US$132.5 million, were estimated. For the estimate, a discount rate of 15.1 percent and a growth rate in perpetuity of 6.8 percent were used as assumptions.

The following table summarizes the key assumptions used to determine the present value for 2024 and 2023:

	2024
Descripción	Perpetual growth rate		Discount rate
	%		%
MiBanco - Edyficar Perú		5.60		11.90
Prima AFP - AFP Unión Vida		1.60		14.20
Credicorp Capital Colombia		3.80		14.40
Banco de Crédito del Perú		4.60		10.90
Mibanco Colombia		6.10		13.80
Pacífico Seguros (*)		4.60	10.70 and 12.30
Atlantic Security Holding Corporation		2.30		11.30
Monokera S.A.S.		-		30.00
Tenpo		-		25.00
Joinnus S.A.C.		-		25.00
Compañía Incubadora de Soluciones Móviles S.A-Culqi		-		30.00
Wally POS S.A.C.		-		25.00
Sami Shop S.A.C.		-		25.00

	2023
Descripción	Perpetual growth rate		Discount rate
	%		%
MiBanco - Edyficar Perú		5.60		13.10
Prima AFP - AFP Unión Vida		1.60		15.50
MiBanco - Colombia		6.80		15.10
Credicorp Capital Colombia		4.60		14.90
Banco de Crédito del Perú		4.60		12.40
Pacífico Seguros (*)		4.60	11.80 and 13.90
Atlantic Security Holding Corporation		2.30		12.60
Tenpo		-		25.00
Compañía Incubadora de Soluciones Móviles S.A - Culqi		-		25.00
Wally POS S.A.C		-		25.00
Sami Shop S.A.C		-		25.00

(*) As of December 31, 2024, and 2023, it corresponds to the discount rates used to determine the recoverable value of the cash flows that correspond to the general and life insurance business lines.

Five or ten years of cash flows, depending on the business maturity, were included in the discounted cash flow model. The growth rate estimates are based on historic performance and management’s expectations of market development. A long-term growth rate to perpetuity has been determined taking into account forecasts included in industry reports.

The discount rates represent the assessment of the specific risks of the cash-generating unit. The discount rate originates from the financial asset pricing model (MVAF). The cost of capital is derived from the returns that the Group’s investors expect to obtain, the specific risk incorporated by applying individual comparable beta factors adjusted to the debt structure of each CGU and the specific country and market risk premiums for each CGU. The beta factors are evaluated annually based on available market information.

The key assumptions described above may change if market and economic conditions change. As of December 31, 2024 and 2023, the Group estimates that the reasonableness of these possible changes in these assumptions would not cause the recoverable amount of all CGU’s to decrease to below their carrying value.