OTHER ASSETS AND OTHER LIABILITIES

12 Months Ended

Dec. 31, 2017

Disclosure of Other Assets And Other Liabilities [Abstract]

Disclosure of other assets and other liabilities explanatory [text block]

12 OTHER ASSETS AND OTHER LIABILITIES

a) This item consists of the following:

	2017		2016
	S/(000)		S/(000)
Other assets -
Financial instruments:
Receivables		1,676,583		1,240,632
Derivatives receivable (b)		701,826		942,602
Operations in process (c)		82,542		45,450
		2,460,951		2,228,684
Non-financial instruments:
Deferred income tax asset, Note 18(c)		480,057		506,044
Investment in associates (e)		708,873		699,724
Investment properties, net (f)		458,855		504,927
Deferred fees		431,598		504,445
Income tax prepayments, net		301,863		357,149
Seized assets, net		95,012		73,466
VAT (IGV) tax credit		50,138		41,140
Others		12,651		13,334
		2,539,047		2,700,229
Total		4,999,998		4,928,913
Other liabilities -
Financial instruments:
Accounts payable		1,875,153		1,512,804
Derivatives payable (b)		636,762		673,015
Salaries and other personnel expenses		644,234		681,853
Allowance for indirect loan losses, Note 7(d)		442,510		209,559
Operations in process (c)		274,354		136,764
		3,873,013		3,213,995
Non-financial instruments:
Taxes		480,781		286,504
Deferred income tax, Note 18(c)		150,280		172,641
Provision for sundry risks (d)		275,841		296,339
Others		234,197		150,587
		1,141,099		906,071
Total		5,014,112		4,120,066

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 change.

The table below shows at December 31, 2017 and 2016 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 changes in the value of derivatives are measured.

		2017							2016							2017 y 2016
	Note	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) -
Forward foreign exchange contracts			62,353		56,869		10,846,203	Between January 2018 and June 2020		73,722		55,437		9,313,965	Between January 2017 and June 2020	-
Interest rate swaps			101,765		94,238		33,057,283	Between January 2018 and December 2031		87,872		55,927		25,900,896	Between January 2017 and December 2031	-
Currency swaps			332,376		349,779		8,528,764	Between January 2018 and December 2027		428,928		490,475		7,518,170	Between January 2017 and December 2026	-
Foreign exchange options			2,692		980		410,982	Between January 2018 and November 2018		21,490		17,202		2,747,601	Between January 2017 and December 2017	-
			499,186		501,866		52,843,232			612,012		619,041		45,480,632
Derivatives held as hedges
Cash flow hedges (ii) -
Interest rate swaps (IRS)	14(b)(i)		2,491		-		486,150	August 2019		-		-		-	-	Debt to banks
Interest rate swaps (IRS)	14(b)(ii)		1,864		-		486,150	Between September 2018 and November 2019		1,384		-		318,820	Between April 2017 and September 2018	Debt to banks
Interest rate swaps (IRS)	14(b)(iv)		112		-		324,100	January 2018		-		218		335,600	January 2018	Debt to banks
Interest rate swaps (IRS)	14(b)(v)		658		-		324,100	March 2018		1,614		-		335,600	March 2018	Debt to banks
Interest rate swaps (IRS)	16(a)(iii)		-		-		-	-		-		2,736		179,231	October 2017	Notes issued
Interest rate swaps (IRS)	5(c)(i)		4,626		-		486,150	Between March 2019 and December 2019		3,140		294		503,400	Between March 2019 and December 2019	Repurchase agreements
Cross currency swaps (CCS)	16(a)(xi)		-		97,440		972,300	October 2019		-		25,387		1,006,800	October 2019	Bonds issued
Cross currency swaps (CCS)	5(c)(iii)		18,889		-		226,870	August 2020		35,158		-		234,920	August 2020	Repurchase agreements
Cross currency swaps (CCS)	5(c)(iv)		-		26,240		145,845	August 2026		-		6,871		151,020	August 2026	Repurchase agreements
Cross currency swaps (CCS)	5(c)(v)		-		9,053		81,025	August 2026		1,154		-		83,900	August 2026	Repurchase agreements
Cross currency swaps (CCS)	6(a)(iv)		24,263		1,386		228,756	Between January 2018 and September 2024		16,537		9,483		236,335	Between January 2017 and September 2024	Available-for-sale investments
Cross currency swaps (CCS)	6(a)(iv)		-		151		55,097	March 2019		1,289		7,588		167,800	Between January 2017 and March 2019	Available-for-sale investments
Cross currency swaps (CCS)	14(b)(iii)		73		79		324,100	January 2020		-		-		-	-	Debt to banks
Cross currency swaps and interest rate swaps (CCS and IRS)	5(c)(ii)		32,719		-		259,280	August 2020		54,103		-		268,480	August 2020	Repurchase agreements
Fair value hedges -
Interest rate swaps (IRS)	16(a)		110,808		-		7,915,886	Between September 2020 and April 2023		212,162		-		8,196,765	Between September 2020 and April 2023	Bonds issued
Interest rate swaps (IRS)	6(a)(iv)		6,137		547		659,524	Between April 2018 and October 2023		4,049		1,397		760,315	Between January 2017 and October 2023	Available-for-sale investments
			202,640		134,896		12,975,333			330,590		53,974		12,778,986
			701,826		636,762		65,818,565			942,602		673,015		58,259,618

(i) Held-for-trading derivatives are principally negotiated to satisfy clients’ 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 IAS 39 hedging accounting requirements. Fair value of derivatives held for trading classified by contractual maturity is as follows:

	At December 31, 2017												At December 31, 2016
	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)
Forward foreign exchange contracts		41,995		19,238		1,120		–		–		62,353		58,168		12,737		2,040		777		–		73,722
Interest rate swaps		5,487		16,971		22,705		18,464		38,138		101,765		6,763		9,480		18,550		9,591		43,488		87,872
Currency swaps		12,190		7,803		142,370		58,391		111,622		332,376		751		20,029		87,300		212,990		107,858		428,928
Foreign exchange options		2,468		224		–		–		–		2,692		9,827		11,663		–		–		–		21,490
Total assets		62,140		44,236		166,195		76,855		149,760		499,186		75,509		53,909		107,890		223,358		151,346		612,012

	At December 31, 2017												At December 31, 2016
	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
Forward foreign exchange contracts		39,888		16,603		378		–		–		56,869		46,721		8,661		43		12		–		55,437
Interest rate swaps		6,841		14,196		24,537		17,018		31,646		94,238		4,226		8,236		17,749		4,300		21,416		55,927
Currency swaps		22,457		27,855		171,412		17,056		110,999		349,779		64,023		37,626		133,530		178,979		76,317		490,475
Foreign exchange options		547		433		–		–		–		980		4,564		12,638		–		–		–		17,202
Total liabilities		69,733		59,087		196,327		34,074		142,645		501,866		119,534		67,161		151,322		183,291		97,733		619,041

(ii) The Group is exposed to variability in future cash flows on assets and liabilities in foreign currency and/or which 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:

	At December 31, 2017
	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)
Cash inflows (assets)		962,966		3,432,756		100,247		283,896		4,779,865
Cash outflows (liabilities)		(1,016,748)		(3,434,333)		(110,355)		(265,716)		(4,827,152)
Consolidated statement of income		(1,043)		(26,534)		1,749		(7,348)		(33,176)

	At December 31, 2016
	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)
Cash inflows (assets)		524,775		2,549,873		836,116		294,889		4,205,653
Cash outflows (liabilities)		(578,526)		(2,575,723)		(732,108)		(255,205)		(4,141,562)
Consolidated statement of income		(1,437)		4,863		6,704		1,383		11,513

At December 31, 2017, the accumulated balance of the net unrealized loss from the cash flow hedges is included as other comprehensive income in “Cash flow hedge reserves” and results from the current hedges, which have an unrealized profit for approximately S/33.2 million, and from the revoked hedges, which have an unrealized profit for approximately S/7.4 million (unrealized profit for approximately S/11.5 million and S/13.1 million from current and revoked hedges, respectively at December 31, 2016), 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 shown in Note 17(c).

c) Operations in process include deposits received, loans disbursed, loans collected, 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 consolidated statement of financial position until the first days of the following month. These transactions do not affect the Group’s consolidated net income.

d) The movement of the provision for sundry risks for the years ended December 31, 2017, 2016 and 2015 was as follows:

	2017		2016		2015
	S/(000)		S/(000)		S/(000)
Balance at the beginning of the year		296,339		196,261		158,013
Provision, Note 27		29,023		28,093		38,248
Increase (decrease), net		(49,521)		71,985		–
Balances		275,841		296,339		196,261

Due to the nature of its business, the Group has some pending legal claims for which it records a provision when, in the opinion of Management and its in-house legal advisors, 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 the opinion of Management and its in-house legal advisors, they will not have a material effect on the Group’s consolidated financial statements.

e) Credicorp’s principal associates are Pacífico EPS and Carlyle Peru, the balances of which amount to S/510.9 million and S/144.1 million, at December 31, 2017, respectively (S/490.1 million and S/145.8 million at December 31, 2016, respectively).

f) Investment properties -

The movement of cost and accumulated depreciation of investment properties is as follows:

	2017						2016
	Own assets
	Land		Building		Total		Total
	S/(000)		S/(000)		S/(000)		S/(000)
Cost
Balance at January 1		289,432		261,174		550,606		462,440
Additions (i)		4,637		4,580		9,217		88,186
Transfers (ii)		–		66,856		66,856		–
Sales (iii)		(47,987)		(41,910)		(89,897)		–
Disposals and others		(27,419)		(10,738)		(38,157)		(20)
Balance at December 31		218,663		279,962		498,625		550,606
Accumulated depreciation
Balance at January 1		–		45,679		45,679		41,307
Depreciation for the year		–		6,440		6,440		4,369
Sales (iii)		–		(6,277)		(6,277)		–
Disposals and others		–		(6,072)		(6,072)		3
Balance at December 31		–		39,770		39,770		45,679
Net carrying amount		218,663		240,192		458,855		504,927

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

(i) During the period 2016, subsidiary Pacífico Seguros carried out constructions and acquired a plot of land located at Nicolas Dueñas Avenue 475, Cercado de Lima for an amount of approximately S/21.9 million and another located in Ex-Fundo Marquez, in the vicinity of KM 14.6 of Coronel Nestor Gambeta Avenue, Callao for an amount of approximately S/60.9 million.

(ii) In order to consolidate the real estate projects, mainly of offices, during the year 2017, Pacífico Seguros liquidated the trust of the “Panorama” building located at Av. Juan de Arona N° 830 for a total amount of S/66.9 million.

(iii) The balance of sales for the year 2017 mainly comprises the transfer by Pacífico Seguros of the building located at Av. Guardia Civil 337 – Urb. Corpac, San Borja, which was sold for S/95.7 million. The total net cost of the building amounting to S/68.5 million comprises S/34.5 million in land and S/34.0 million in building (cost of S/38.5 million and depreciation of S/4.5 million).

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