CREDICORP LTD | CIK:0001001290 | 3

  • Filed: 4/26/2018
  • Entity registrant name: CREDICORP LTD (CIK: 0001001290)
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    • ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory

    17
    EQUITY
     
    a)
    Share capital -
     
    At December 31, 2017, 2016 and 2015 a total of 94,382,317 shares have been issued at US$5 par value each.
     
    b)
    Treasury stock -
     
    We present below the treasury stock owned by the Group entities at December 31, 2017, 2016 and 2015:
     
     
     
    2017
     
    2016
     
    2015
     
     
     
     
     
     
     
     
     
     
     
     
    Atlantic Security Holding Corporation
     
     
    14,620,846
     
     
    14,620,846
     
     
    14,620,846
     
    Share-based compensation plans, Note 19
     
     
    276,011
     
     
    277,436
     
     
    269,832
     
    Others
     
     
    5,151
     
     
    17,255
     
     
    13,155
     
     
     
     
    14,902,008
     
     
    14,915,537
     
     
    14,903,833
     
     
    During 2017, 2016 and 2015, the Group bought 132,110, 156,603 and 145,871 shares of Credicorp Ltd., respectively, for a total of US$21.9 million (equivalent to S/71.0 million ), US$20.0 million (equivalent to S/66.5 million ) and US$21.7 million (equivalent to S/72.9 million), respectively.
     
    c)
    Reserves -
     
    Certain of the Group’s subsidiaries are required to keep a reserve that equals a percentage of paid-in capital (20, 30 or 50 percent, depending on its activities and country in which production takes place); this reserve must be constituted with annual transfers of not less than 10 percent of net profits. At December 31, 2017, 2016 and 2015, the balance of reserves amounts to approximately S/4,480.3, S/3,987.5 million and S/2,996.7 million, respectively.
     
    At the Board meetings held on February 22, 2017, February 24, 2016 and February 25, 2015, the decision was made to transfer from “Retained earnings” to “Reserves” S/2,355.0 million, S/2,316.4 million and S/1,820.5 million, respectively.
     
    “Other reserves” include unrealized gains (losses) on Available-for-sale investments and on cash flow hedges, net of deferred income tax and non-controlling interest. Movement was as follows:
     
     
     
    Net unrealized gains (losses):
     
     
     
    Reserve for 
    available-for-sale 
    investments
     
    Reserve for cash 
    flow hedges
     
    Foreign exchange 
    translation
     
    Total
     
     
     
    S/(000)
     
    S/(000)
     
    S/(000)
     
    S/(000)
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Balances at January 1, 2015
     
     
    1,223,615
     
     
    5,937
     
     
    (206,166)
     
     
    1,023,386
     
    Decrease in net unrealized gains on Available-for-sale investments
     
     
    (323,348)
     
     
    –
     
     
    –
     
     
    (323,348)
     
    Transfer of net realized gains on Available-for-sale investments to profit or loss, net of realized loss
     
     
    (191,716)
     
     
    –
     
     
    –
     
     
    (191,716)
     
    Transfer of the impairment loss on Available-for-sale investments to profit or loss, Note 6(a)
     
     
    (55,647)
     
     
    –
     
     
    –
     
     
    (55,647)
     
    Change from net unrealized gains on cash flow hedges, Note 12(b)(ii)
     
     
    –
     
     
    50,273
     
     
    –
     
     
    50,273
     
    Transfer of net realized gains on cash flow hedges to profit or loss, Note 12(b)(ii)
     
     
    –
     
     
    (11,160)
     
     
    –
     
     
    (11,160)
     
    Foreign exchange translation
     
     
    –
     
     
    –
     
     
    270,907
     
     
    270,907
     
    Balances at December 31, 2015
     
     
    652,904
     
     
    45,050
     
     
    64,741
     
     
    762,695
     
    Increase in net unrealized gains on Available-for-sale investments
     
     
    554,869
     
     
    –
     
     
    –
     
     
    554,869
     
    Transfer of net realized gains on Available-for-sale investments to profit or loss, net of realized loss
     
     
    (75,444)
     
     
    –
     
     
    –
     
     
    (75,444)
     
    Transfer of the impairment loss on Available-for-sale investments to profit or loss Note 6(a)
     
     
    14,459
     
     
    –
     
     
    –
     
     
    14,459
     
    Change in net unrealized gains on cash flow hedges, Note 12(b)(ii)
     
     
    –
     
     
    (16,724)
     
     
    –
     
     
    (16,724)
     
    Transfer of net realized losses on cash flow hedges to profit or loss, Note 12(b)(ii)
     
     
    –
     
     
    (3,676)
     
     
    –
     
     
    (3,676)
     
    Foreign exchange translation
     
     
    –
     
     
    –
     
     
    (26,448)
     
     
    (26,448)
     
    Balance at December 31, 2016
     
     
    1,146,788
     
     
    24,650
     
     
    38,293
     
     
    1,209,731
     
    Increase in net unrealized gains on Available-for-sale investments
     
     
    873,868
     
     
    –
     
     
    –
     
     
    873,868
     
    Transfer of net realized gains on Available-for-sale investments to profit or loss, net of realized loss
     
     
    (517,006)
     
     
    –
     
     
    –
     
     
    (517,006)
     
    Transfer of the impairment loss on Available-for-sale investments to profit or loss Note 6(a)
     
     
    766
     
     
    –
     
     
    –
     
     
    766
     
    Change in net unrealized gains on cash flow hedges, Note 12(b)(ii)
     
     
    –
     
     
    (59,709)
     
     
    –
     
     
    (59,709)
     
    Transfer of net realized losses on cash flow hedges to profit or loss, Note 12(b)(ii)
     
     
    –
     
     
    2,278
     
     
    –
     
     
    2,278
     
    Foreign exchange translation
     
     
    –
     
     
    –
     
     
    (54,334)
     
     
    (54,334)
     
    Balance at December 31, 2017
     
     
    1,504,416
     
     
    (32,781)
     
     
    (16,041)
     
     
    1,455,594
     
      
    d)
    Components of other comprehensive income -
     
    The consolidated statement of comprehensive income includes other comprehensive income from available-for-sale investments and from derivative financial instruments used as cash flow hedges; their movements are as follows:
     
     
     
    2017
     
    2016
     
    2015
     
     
     
    S/(000)
     
    S/(000)
     
    S/(000)
     
    Available-for-sale investments:
     
     
     
     
     
     
     
     
     
     
    Unrealized gains (losses) on available-for-sale investments
     
     
    873,868
     
     
    554,869
     
     
    (323,348)
     
    Transfer of realized gains on available-for-sale investments to profit or loss, net of realized losses
     
     
    (517,006)
     
     
    (75,444)
     
     
    (191,716)
     
    Transfer of impairment losses on available-for-sale investments to profit or loss
     
     
    766
     
     
    14,459
     
     
    (55,647)
     
    Sub total
     
     
    357,628
     
     
    493,884
     
     
    (570,711)
     
    Non-controlling interest
     
     
    4,120
     
     
    1,799
     
     
    (46,529)
     
    Income tax
     
     
    13,962
     
     
    22,975
     
     
    (18,503)
     
     
     
     
    375,710
     
     
    518,658
     
     
    (635,743)
     
     
     
     
     
     
     
     
     
     
     
     
    Cash flow hedge:
     
     
     
     
     
     
     
     
     
     
    Net (loss) gains on cash flow hedges
     
     
    (59,709)
     
     
    (16,724)
     
     
    50,273
     
    Transfer of net realized losses (gains) on cash flow hedges to profit or loss
     
     
    2,278
     
     
    (3,676)
     
     
    (11,160)
     
    Sub total
     
     
    (57,431)
     
     
    (20,400)
     
     
    39,113
     
    Non-controlling interest
     
     
    (1,219)
     
     
    585
     
     
    –
     
    Income tax
     
     
    (18,719)
     
     
    (2,294)
     
     
    1,956
     
     
     
     
    (77,369)
     
     
    (22,109)
     
     
    41,069
     
     
     
     
     
     
     
     
     
     
     
     
    Foreign exchange translation:
     
     
     
     
     
     
     
     
     
     
    Exchange gains or losses
     
     
    (54,334)
     
     
    (26,448)
     
     
    270,907
     
    Non-controlling interest
     
     
    107
     
     
    (123)
     
     
    –
     
     
     
     
    (54,227)
     
     
    (26,571)
     
     
    270,907
     
     
    e)
    Dividend distribution -
     
    At December 31, 2017, 2016 and 2015, Credicorp paid cash dividends, net of the effect of treasury shares, for approximately US$298.1, US$184.7 and US$174.4 million, respectively (equivalent to approximately S/980.0, S/653.3 and S/540.0 million, respectively). In this sense, at December 31, 2017, 2016 and 2015, cash dividend payouts per share totaled US$3.7, US$2.3 and US$1.8, respectively.
     
    Furthermore, at the meeting of the Board of Directors held on October 25, 2017, agreed to pay additional dividends, net of the effect of treasury stock, for approximately US$386.5 million (equivalent to S/1,252.3 million) from the reserves. Said dividends were paid in November 2017.
     
    The Board of Directors Meeting dated February 28, 2018, agreed to declare a cash dividend of S/14.1726 per common share, approximately S/1,337.6 million, corresponding to the 2017 results, which will be paid on May 11, 2018. The cash dividend will be paid in U.S. Dollars using the weighted exchange rate registered by the Superintendent of Banks, Insurance and Pension Funds (Superintendencia de Banca, Seguros y AFP) for the transactions at the close of business on May 9, 2018.
     
    In accordance with current Peruvian legislation, there is no restriction for overseas remittance of dividends or the repatriation of foreign investment. At December 31, 2017 dividends paid by the Peruvian subsidiaries to Credicorp are subject to a 5.0 percent withholding tax and at December 31, 2016 and 2015, the withholding rate was 6.8 percent.
     
    f)
    Regulatory capital -
     
    At December 31, 2017 and 2016, the regulatory capital requirement (“patrimonio efectivo” in Peru) applicable to Credicorp subsidiaries engaged in financial services and insurance activities in Peru, determined under the provisions of the Peruvian banking and insurance regulator, SBS, totals approximately S/21,723.0 million and S/21,174.7 million, respectively. At those dates, the Group’s regulatory requirement exceeds by approximately S/3,710.3 million and S/3,915.7 million, respectively, the minimum regulatory capital required by the SBS.