29	OPERATING SEGMENTS

For management purposes, the Group is organized into four reportable segments based on products and services as follows:

Banking -

Principally handling loans, credit facilities, deposits and current accounts.

Insurance -

Principally comprising the issue of insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health and pension funds.

Pension funds -

Providing services of private pension fund management to affiliated pensioners.

Investment banking -

Provide investment brokerage and management to a broad and diverse clientele, including corporations, institutional investors, governments and foundations. Also the structuring, and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market. Additionally, it structures securitization processes for companies and manages mutual funds.

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 used 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 the years 2017, 2016 and 2015.

(i)

The table below shows (in millions of soles) a breakdown of the Group’s total income, operating income and non-current assets; classified by location of customers and assets, respectively for the years ended December 31, 2017, 2016 and 2015:

2017	Total income (*)		Operating income (**)		Allowance for loan losses, net of recoveries		Depreciation and amortization		Impairment of available for sale assets		Income before income tax		Income tax		Net profit		Capital expenditures intangibles and goodwill		Total assets		Total liabilities

Banking		14,071		8,154		(1,789)		(326)		(8)		4,886		(1,266)		3,620		339		145,999		128,324
Insurance		2,474		619		–		(49)		–		353		(28)		325		59		10,988		8,409
Pension funds		392		1		–		(23)		–		206		(66)		140		10		798		243
Investment banking		791		(12)		–		(22)		7		130		(33)		97		8		12,687		11,243
Total consolidated		17,728		8,762		(1,789)		(420)		(1)		5,575		(1,393)		4,182		416		170,472		148,219

2016	Total income (*)		Operating income (**)		Allowance for loan losses, net of recoveries		Depreciation and amortization		Impairment of available for sale assets		Income before income tax		Income tax		Net profit		Capital expenditures intangibles and goodwill		Total assets		Total liabilities

Banking		13,059		7,890		(1,785)		(319)		(16)		4,175		(1,127)		3,048		326		142,775		125,998
Insurance		2,577		666		–		(45)		1		355		(51)		304		44		9,789		7,646
Pension funds		411		1		–		(21)		–		225		(70)		155		8		757		245
Investment banking		712		2		–		(22)		1		136		(33)		103		9		3,114		2,430
Total consolidated		16,759		8,559		(1,785)		(407)		(14)		4,891		(1,281)		3,610		387		156,435		136,319

2015	Total income (*)		Operating income (**)		Allowance for loan losses, net of recoveries		Depreciation and amortization		Impairment of available for sale assets		Income before income tax		Income tax		Net profit		Capital expenditures intangibles and goodwill		Total assets		Total liabilities

Banking		12,395		7,328		(1,881)		(232)		(57)		3,692		(1,032)		2,659		272		142,963		129,189
Insurance		2,439		630		–		(42)		13		424		(74)		350		144		9,059		7,270
Pension funds		403		(1)		–		(19)		–		228		(66)		162		2		766		247
Investment banking		528		2		–		(103)		–		17		(25)		(8)		7		2,692		2,047
Total consolidated		15,765		7,959		(1,881)		(396)		(44)		4,361		(1,197)		3,163		425		155,480		138,753

(ii)

The following table presents (in millions of soles) the distribution of the external revenue, operating revenue and non-current assets of the Group; all assigned based on the location of the clients and assets, respectively, at December 31, 2017, 2016 and 2015:

	At December 31, 2017								At December 31, 2016								At December 31, 2015
	Total income (*)		Operating income (**)		Total non current assets (***)		Total liabilities		Total income (*)		Operating income (**)		Total non current assets (***)		Total liabilities		Total income (*)		Operating income (**)		Total non current assets (***)		Total liabilities

Perú		11,668		8,199		2,976		130,953		11,388		8,051		2,994		119,813		10,907		7,533		3,070		121,870
Panama		4,274		37		121		933		3,791		27		124		1,254		3,491		23		104		2,233
Cayman Islands		512		183		5		5,250		466		147		5		5,695		490		129		5		5,940
Bolivia		813		338		102		8,490		682		321		79		7,246		507		267		79		6,672
Colombia		286		10		145		1,573		264		17		172		1,396		233		12		172		1,500
United States of America		8		–		–		2		8		–		–		2		5		–		–		3
Chile		167		(5)		139		1,018		160		(4)		138		913		132		(5)		142		535
Total Consolidated total		17,728		8,762		3,488		148,219		16,759		8,559		3,512		136,319		15,765		7,959		3,572		138,753

(*)

Including total interest and similar 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.