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This document contains accurate and sufficient information with regard to the business
development of Banco de Comercio in 2016. Without prejudice to the liability of the issuer, the
undersigned take on responsibility for the contents hereof, pursuant to the legal provisions in
force.
Mr. Aron Kizner Zamudio Mr. Luis A. Guevara Flores
General Manager Administration and Financial Manager
TABLE OF CONTENTS
LETTER FROM THE CHAIRMAN OF THE BOARD ................................................................................. 4
LETTER FROM THE GENERAL MANAGER ............................................................................................ 6
SENIOR & MANAGEMENT TEAMS .................................................................................................. 8
1. INTERNATIONAL CONTEXT ................................................................................................... 10
1.1 WORLD ECONOMY ........................................................................................................... 10
1.2 LATIN AMERICAN ECONOMY ........................................................................................... 12
2. NATIONAL CONTEXT ................................................................................................................ 15
2.1 MACROECONOMIC VARIABLES ........................................................................................ 16
2.2 BANKING SYSTEM ............................................................................................................. 20
2.3 VISION & MISSION ............................................................................................................ 26
3.1 INCOME STATEMENT ........................................................................................................ 27
3.2 TOTAL LOANS .................................................................................................................... 29
3.3 DEPOSITS ........................................................................................................................... 29
3.4 FINANCIAL INDICATORS ................................................................................................... 30
3.5 RISK RATING ...................................................................................................................... 32
4. BUSINESS UNITS ........................................................................................................................ 33
4.1 ENTERPRISE BANKING ...................................................................................................... 33
4.2 INSTITUTIONAL BANKING................................................................................................. 34
4.3 INTERNATIONAL BUSINESS & CORRESPONDENT BANKS ................................................ 35
4.4 PERSONAL BANKING & INSTITUTIONAL AGREEMENTS .................................................. 36
4.5 TREASURY ......................................................................................................................... 38
5. SUPPORT UNITS ........................................................................................................................ 39
5.1 HUMAN RESOURCES MANAGEMENT .............................................................................. 39
5.2 TECHNOLOGY DIVISION .................................................................................................... 41
5.3 OPERATIONS DIVISION ..................................................................................................... 42
5.4 PROCESS MANAGEMENT.................................................................................................. 42
5.5 GLOBAL RISK MANAGEMENT ........................................................................................... 43
5.6 MONEY LAUNDERING PREVENTION SYSTEM .................................................................. 49
6. MISCELLANEOUS ....................................................................................................................... 50
6.1 LEGAL FRAMEWORK ......................................................................................................... 51
6.2 DESCRIPTION OF THE HOLDING COMPANY BANCO DE COMERCIO IS PART OF ............ 52
6.3 OPERATIONS & DEVELOPMENT OF THE BANK ................................................................ 53
6.4 LISTING ON THE STOCK MARKET ..................................................................................... 53
6.5 SIGNING OF THE AUDITED FINANCIAL STATEMENTS ...................................................... 54
6.6 FINANCIAL INFORMATION PREPARATION & REVISION – PEOPLE IN CHARGE .............. 54
6.7 CULTURE & SOCIAL RESPONSIBILITY ................................................................................ 54
6.8 GOOD CORPORATE GOVERNANCE................................................................................... 57
6.9 BRANCH & OFFICES NETWORK ........................................................................................ 57
LETTER FROM THE CHAIRMAN OF THE BOARD
As the Chairman of the Board of Banco
de Comercio, I am pleased to present
you with our 2016 Annual Report,
which, as expected by our shareholder,
shows the performance of the most
important indicators.
In 2016, in an international economic
context marked by greater political
uncertainty in the advanced economies
and lower dynamism in global trade,
the Peruvian economy recorded a
growth of 3.9%, which is mainly the
result of the recovery of traditional
exports. However, internal demand is
not showing yet any signs of recovery,
although higher expectations among
consumers and entrepreneurs can be
expected to lead to an increased
growth in 2017.
As for the performance of the sector in
2016, the banking system recorded an annual growth in terms of its direct loans of 3.9%, in a
context of deceleration of internal demand and better judgment in granting loans. The growth
in terms of loans was led by financing to corporate enterprises (8.4%); at the same time,
consumer loans grew by 7.2%, as a result of an expansion in credit cards and loans.
It should be mentioned that in 2016, as part of the new process to formulate the Strategic Plan
for the 2016-2018 horizon, the vision of the Bank changed to «to be recognized for offering
our clients the best experience in financial services, accompanying them in every stage of their
lives or development», in order to generate value in time, to boost the business and to provide
an innovative experience in our services, based on the general strategic objectives in the long
term.
Personally, I consider that this has been a year of consolidation for our Institution, as we
continued to meet the objectives established by obtaining once more a record level of net
profits, which is sustained in the increased volume of our businesses and in the efficient use of
the resources of the Bank. This result has been achieved due to the team work of the Board of
Directors, the Management staff and all the Bank employees. In this regard, I value the
Institution for its ability to maximize its strengths through the opportunities that appear on
the market, and to recognize and stimulate the talent of our employees based on the
decisions made to achieve the best economic and financial indicators during the current fiscal
year.
Actually, the Banco de Comercio Management concluded 2016 in a successful manner,
meeting the objective of increasing the performance of its main strategic indicators which are
capital profitability, portfolio quality, liquidity optimization and efficient use of resources, as
well as moving forward with the growth of the businesses in our natural niche of institutional
agreements through payroll deduction loans, thus increasing our profitability at a lower risk.
Summarizing, in 2016, the amount of direct loans granted by the Bank reached PEN 1,270.7
million, total deposits recorded a stock of PEN 1,275.2 million and net capital increased to PEN
237.7 million. Interest income earned by the Bank grew to PEN 188.7 million, allowing us to
obtain a net profit of PEN 31.6 million, which exceeds the PEN 25.6 million achieved in 2015,
thus recording a historic record for the third year in a row.
Finally, I would like to take this opportunity to extend my deep appreciation to our
shareholders, the Bank Management and to all the employees of our beloved Institution, on
my behalf and on behalf of the Board of Directors. I also want to express our appreciation for
their commitment and for believing in Banco de Comercio.
Sincerely,
Carlos Adrián Linares Peñaloza
LETTER FROM THE GENERAL MANAGER
I think we can say that 2016 was a
challenging year for Banco de Comercio,
in terms of both the internal and the
external context, during which the Bank
managed to improve its financial
performance by implementing shares,
projects and initiatives aligned with the
2016-2018 Strategic Planning. Our
mission of «Providing innovative
solutions in a cordial, timely and
professional manner in order to
accompany our clients in achieving their
aspirations and goals», together with
the specific strategic objectives that
include strengthening effective capital,
increasing shareholder profitability,
positioning the Bank´s Brand, and
achieving efficiency in the use of
resources, have been some of the main
actions taken.
In this context, business was mainly focused on the consumer segment of the Peruvian Armed
Forces and the Police Force, through the opening of new information offices in Chiclayo and
Trujillo, and through promotional campaigns with adequate terms and fees. We have also
been focused on serving company operations with a sound financial position and greater
growth perspectives.
The direct loan portfolio developed in a remarkably dynamic manner in 2016, with an 11.4%
growth, which is above the 3.9% shown by the banking system. This performance was led by
the expansion of non-revolving consumer loans by 11.2%. Furthermore, mortgage loans and
foreign trade grew by 20.3% and 46.0%, respectively.
It is worth mentioning that in 2016 the results were stimulating for our Institution, as we
managed to improve the solvency levels, optimize liquidity, maximize operational capacity,
rationalize administrative expenses, apply a policy of good judgment in granting loans, as well
as to improve the structuring of the products and the services; all this through responsible
management and efficient use of resources. As a result of this, a capital profitability of 14.1%
was obtained with an operational efficiency ratio of 36.5% and a global capital ratio of 13.7%.
In addition, the high-risk credit coverage ratio increased to 127.5% during the fiscal year. It
should be highlighted that the net profit of PEN 31.6 million is the highest recorded in the
history of the Bank, with an annual growth rate of 23.5%, exceeding the rate shown by the
banking system, which was of 2.6% only.
The results mentioned above are the product of the joint efforts made by the Board of
Directors, the Management, and the employees of the Bank.
Summarizing, our Institution, Banco de Comercio, which is always committed to national
development and is particularly focused on the progress of Peruvian families, will continue to
grow stronger in order to offer more and better services to our clients and users. We,
therefore, believe in the future of this great country, in the capacity of the Peruvian people
and in the value of the solid economic foundations the national economy has been managed
with. Therefore, we continuously prepare ourselves for our clients, always seeking to provide
the best service within the system, through experience in finance with innovative solutions,
both in line with our Vision and Mission of generating the greatest value perceived by our
clients and passion for the service among our employees.
I would like to express my gratitude to our shareholder for its support, to the Board of
Directors for their contribution, to our employees for their commitment, and to the
Management Team for its professionalism shown by good and timely decision making, which
allowed for the businesses to continue their growth. With all these strengths, I hope that
Banco de Comercio will overcome future challenges, while standing out for its renowned
quality of service and consolidating its presence in the market.
Sincerely,
Aron Kizner Zamudio
SENIOR & MANAGEMENT TEAMS
The 2016 Senior Team was made up as follows:
Name Position Since
Carlos Adrián Linares Peñaloza Chairman March 30, 2016
Ricardo Palomino Bonilla Vice Chairman
Ferruccio Giuliano Cerni Bejarano Director
Franklin Adolfo Huaita Alfaro Director
Gladys Edith Herrera Castañeda Director October 18, 2016
Eduardo José Sánchez Carrión Director October 18, 2016
Ernesto Mitsumasu Fujimoto Director November 21, 2016
The following people were also part of the 2016 Senior Team:
Name Position Since
Carlos Titto Almora Ayona Chairman March 22, 2016
Iván Vega Loncharich Director March 23, 2016
Kitty Elisa Trinidad Guerrero Director October 18, 2016
Roberto Carlos Reynoso Peñaherrera Director October 18, 2016
2016 MANAGEMENT TEAM
Name Position Since
Aron Kizner Zamudio General Manager
Néstor Alberto Plasencia Angulo Manager of the Internal Auditing Division
Luis Alberto Guevara Flores Deputy Manager of the Administration and Finance Division
Fernando Soto La Torre Manager of the Enterprise Banking Division May 11, 2016
Marisa del Carmen Freire Trigoso Manager of the Personal Banking & Institutional Agreements Division
José David Alejandro Campodónico Rojas Deputy Manager of the Operations Division
Mario Alfredo Ballón García Deputy Manager of the Human Resources Division
Rosa Esther Guevara Heredia Head of the Risk Division May 2, 2016
Carlos Alberto Bechet Bustamante Deputy Manager of the Technology Division
Carmen Rosa Ganoza Ubillús Head of the Legal Department
María Alejandra Castillo Vargas Head of the Marketing Department
Marina Lucrecia Lastarria Gibaja de Nuñez Head of the Process Management Department
It should be mentioned that Javier Manrique Vidal acted as Enterprise Banking Manager
until April 30, 2016, while Mario Cifuentes Vásquez was in charge of the Risk Management
Division up to May 1, 2016.
1. INTERNATIONAL CONTEXT
1.1 WORLD ECONOMY
In 2016, according to the International Monetary Fund (IMF), the global economy grew by
3.1%, mainly due to a slowdown in global trade, weakening investment and political
uncertainty. In this context, a weakening in the growth of the advanced economies with
low inflation rates could be noted. The emerging economies, in turn, as well as the
developing economies, maintained their growth levels, although not with the same
results.
The US economy grew by 1.6% in 2016, which is the lowest growth rate in the past five
years associated with the contraction of investment expenses and with the lower
dynamism in exports. However, in a context of inflation rates and unemployment that
have been closer to the objectives of the monetary policy, the Federal Reserve (FED) rose
the interest rates of federal funds from 0.50 to 0.75% as of December 2016. It is worth
specifying that following the elections, greater uncertainty was noted with regard to the
effect of the policy of the new Administration.
The Eurozone, in turn, recorded an annual growth of 1.7% in 2016, which was below the
economic performance achieved in 2015 (2.0%), while inflation increased to 1.1% year-
over-year as of December; the highest level achieved since September 2013, but still
below its target inflation of 2%.
In terms of the monetary policy, the European Central Bank (ECB) cut its reference interest
rate to historic minimum values (0%) since March 2016. Furthermore, in December 2016,
the ECB decided to expand its monetary stimulation program in nine months up to the end
of 2017, thus maintaining the value of said program at 80,000 million euros until March
2017. However, between April and December of the same year, the value of the program
will be reduced to 60,000 million euros.
In June 2016, the result of the referendum based on which the United Kingdom decided to
step out of the European Union (Brexit), led the pound sterling to decrease to its lowest
level in three decades, with a devaluation of 16% in 2016 compared to the dollar. The
Bank of England (BOE), in turn, in August 2016, cut its reference interest rate to a historic
level (0.25%), as a reaction to the uncertainty caused by Brexit.
Japan recorded an economic growth of 1.0%, resulting from the measures announced by
the Government, such as delaying the increase of consumer tax. As a result, a slight
recovery could be seen in private consumption, alleviated by the appreciation of the yen,
which weakened the profit margins of the exporters. The Bank of Japan (BOJ), in turn, for
almost four years has been trying to achieve an increase in prices at an approximate
interannual rate of 2%, with an expansive monetary policy that made the country lower its
interest rate to a historic minimum (-0.10%) in January 2016.
Furthermore, China recorded a 6.7% growth in 2016, which was associated with the fiscal
and loan measures taken, mainly focused on investment in infrastructure and on the real-
estate sector. It should be specified that this growth was within the objective established
by the Government (6.5-7.0%). Finally, the Chinese economy is expected to motivate
greater participation of the services sectors, compared to industrial activities.
1.2 LATIN AMERICAN ECONOMY
According to estimates of the IMF, the economy in Latin America and the Caribbean (LAC)
would show a contraction of 0.7% in 2016, associated with the low prices of raw materials
compared to previous periods. Against this background, the South American economies,
which are commodity exporters in the first place, are implementing structural reforms in
order to reduce the negative effects of the international economic context.
In Brazil, GDP shrank by 3.5% —the country’s worst recession in decades— in the midst of
political tensions and the approval of fiscal austerity measures by the Government. The
Central Bank of Brazil, in turn, in 2016 reduced its reference interest rate for the first time
since 2013, when it started to raise such rate. At the same time, inflation fell to 6.3% as of
December 2016, compared to 10.7% one year earlier.
The Mexican economy is said to have grown by 2.3% in 2016, which is less than the
percentage recorded during the same period in 2015 (2.5%). It is worth mentioning that
the Mexican peso devaluated by 20.6% in 2016, due to greater uncertainty with regard to
the commercial and migration policies of the new US Administration, in addition to a
possible increase by the FED of the interest rate halfway 2017.
Oil exporting countries such as Colombia, Ecuador and Venezuela, in turn, experienced
greater levels of pressure in terms of their fiscal balance and public debt. Chile, by
contrast, implemented expansive fiscal policy measures in order to support its growth.
Argentina, on the other hand, returned once more to loan markets at lower rates, while,
however, still maintaining a high inflation rate.
Commodity Market
The Latin American region is traditionally made up of countries that export energy goods,
mainly oil and metals such as copper and iron. Final consumer goods such as soy, sugar,
and coffee, stand out as well.
As for oil, prices showed a slight increasing trend in 2016, after its price had fallen
dramatically to 26 dollars per barrel in February. In November, the members of the Oil
Producing and Exporting Countries (OPEC) and the large producers outside the group
agreed to cut back oil production by 1.2 million barrels per day (bpd) since January 2017
for the next six months, in order to increase the oil price.
On the other hand, the 17% rise in the copper price recorded in 2016 was according to the
expectations with regard to the increase in infrastructure expenses in the United States
and to the growing demand for copper in China. The latter was supported by the
stimulation measures applied by the Chinese government to the real-estate sector,
through public investment and credit expansion. In the local sphere, copper production
grew by 40% in 2016, as a result of the increased production by Cerro Verde and the start-
up of the Las Bambas Project.
Finally, the gold price rose by 9.1% in 2016. During the first part of the year, the gold price
grew as a result of the volatility of the financial markets, caused mainly by the referendum
held in the UK; while during the last quarter of the year, the precious metal price
maintained a decreasing trend up to the end of 2016, compared to a rise in the value of
the dollar.
2. NATIONAL CONTEXT
2.1 MACROECONOMIC VARIABLES
The Peruvian economy1 grew by 3.9% in 2016, exceeding the 3.3% growth recorded in
2015. This result was mainly obtained due to the positive behavior of the metallic-mining
sector following the start-up of the Las Bambas and the expansion of the Cerro Verde
Project. On the other hand, the results recorded by the services and trade sectors, linked
to private consumption, were lower than those obtained in previous periods.
It is worth specifying that the contribution of the mining sector was greater than the
deceleration suffered by domestic demand, which was affected by weakened private
consumption and contraction of private investment.
By type of expenses, domestic demand recorded a growth of 0.9%, below the one
observed in the previous year (3.1%), in a context where private investment continued to
show a negative trend with a decrease of 6.1%, due to problems associated with the
execution of infrastructure projects. Similarly, public expenses showed a contraction of
0.5% in 2016, in line with the objectives related to fiscal consolidation. Private
consumption, in turn, remained equally dynamic with a growth of 3.4%.
1 Economic performance is measured through the Gross Domestic Product (GDP).
Inflation, Exchange Rate and the Foreign Sector
Inflation2 reached 3.23% in 2016 and, therefore, exceeded the target range established by
the Central Reserve Bank of Peru (from 1% to 3%), which reflects a rise in food and energy
prices. Furthermore, underlying inflation3 increased to 2.87% in 2016.
The average interbank closure exchange rate stood at 3.357 soles per dollar at the closing
of December 2016, which meant an annual increase of 1.7%. However, during 2016, the
Central Reserve Bank of Peru (BCRP, by its Spanish initials) intervened with open-market
operations in order to reduce the volatility of the dollar. In this way, net acquisitions at the
negotiation table increased to US$ 786 million.
2 Inflation is measured as the annual variation in the Consumer Price Index (CPI).
3 Underlying inflation does not include the CPI estimates for Food and Energy, as these two sectors are highly
volatile.
As for the foreign sector, in 2016, the Peruvian trade balance recorded a surplus of US$
1,730 million, which is the highest level observed since 2012, and mainly reflects a higher
number of exports throughout the year. These exports increased to US$ 36,838 million,
which means an increase of 7.6% with regard to the previous year. Per type of product,
traditional exports expanded by 11.6%, while non-traditional exports decreased by 1.1%
compared to 2015.
Imports, in turn, increased to US$ 35,107 million, which is 6.1% less than the amount
reached in 2015, due to the lower number of capital and consumer good shipments,
together with the lower expectations regarding entrepreneurial investment.
2011 2012 2013 2014 2015 2016
EXPORTS 46,376 47,411 42,861 39,533 34,236 36,838
Traditional Products 35,896 35,869 31,553 27,686 23,291 26,004
Non-traditional Products 10,176 11,197 11,069 11,677 10,857 10,733
Others 304 345 238 171 87 100
IMPORTS 37,152 41,135 42,248 40,809 37,385 35,107
Consumer Goods 6,734 8,252 8,843 8,896 8,791 8,612
Consumables 18,332 19,273 19,528 18,815 15,923 15,115
Capital Goods 11,730 13,347 13,664 12,913 12,007 11,116
Other Goods 356 262 213 185 664 264
TRADE BALANCE 9,224 6,276 613 -1,276 -3,150 1,730
EXCHANGE TERMS 112.8 110.5 104.2 98.5 92.3 91.6
NIR 48,816 63,991 65,663 62,308 61,485 61,686
Source: BCRP
Foreign Sector: Trade Balance(in Millions of Dollars FOB)
Monetary Policy
The BCRP raised the reference interest rate by 25 basis points to 4.00% and 4.25% in
January and February 2016, respectively, due to the fact that inflation was affected by
temporary factors such as the rise in the prices of food products and the decreased
exchange rate, while the inflation expectations were above the target range. However, as
of March, the BCRP maintained the reference interest rate at 4.25%, as the inflation
expectations remained linked to the target range and to the higher growth rate of the
economy.
The reserve rate in terms of domestic currency, in turn, remained at 6.5% up to December
2016, but it will be reduced to approximately 6.0% as of January 2017, in order to provide
greater sources of funding for loans in domestic currency; whereas the marginal reserve
rate in dollars shrank from 70% to 48%.
In addition, as part of the measures implemented to discourage the granting of loans in
foreign currency, the BCRP granted report operations as medium-term financing.
Fiscal Policy
The Ministry of Economy and Finance (MEF, by its Spanish initials) formulated a
moderately expansive fiscal policy. The deficit of the non-financial public sector recorded
2.7% of GDP as of December 2016, showing a decreasing trend compared to the 3.4% of
GDP recorded in August. The result was 0.3 percentage points lower than the target
established by the Government (3.0% of GDP for 2016).
It should be mentioned that in the last quarter of the year, the Government applied fiscal
adjustment to avoid increasing the budgetary deficit. Finally, pursuant to Supreme Decree
272-2016 EF, approved in early October, and related to priorization of efficient public
spending, the current spending was restricted. The Government also suggested
eliminating the structural fiscal deficit objectives and replacing them by a nominal fiscal
target deficit of 1% of GDP in 2021.
The fact that the deficit in 2016 was higher than it was in 2015, was the result of greater
tax returns and decreased income. In addition, in 2016, for the second consecutive year, a
decrease was noted in the amount of VAT collected, which reached the lowest level since
2008. For this reason, the new Administration suggested a 1% reduction in VAT, subject to
a collection target in 2017.
In September 2016, on the other hand, the MEF carried out an operation of debt swap and
buy-back for an amount of PEN 10,250 million by issuing sovereign bonds expiring in 2028,
which established a new reference to 12 years in the performance curve of the local
currency.
2.2 BANKING SYSTEM
Direct Loans
As of December 31, 2016, the banking system was
made up of 16 banking entities, the direct-loan
portfolio of which is concentrated on the four main
banks with a share of 83.0%. It is worth mentioning
that in July 2016, the Superintendence of Banking,
Insurance and Private Pension Fund Administrators
authorized the start of the liquidation of the Deutsche
Bank in Peru.
The total amount of direct loans within the Peruvian banking system as of December 2016
amounted to PEN 235,371 million, which is 3.9% higher than the amount recorded during
a similar period in the previous year. This decrease in dynamics can be explained based on
the lower economic growth and a stricter loan policy implemented by the banks.
Dollarization of loans stood at 31.8% due to the higher growth rate of loans in local
currency (5.5%), in accordance with the de-dollarization measures imposed by the BCRP.
However, a slight expansion of loans in foreign currency was observed, mainly in foreign
trade operations.
Considered by loan destination, the corporate segment showed the best performance with
an annual growth rate of 8.4%, associated with the fact that the credit policy of the banks
was focused on operations with lower credit risks. Loans aimed at individuals, such as
consumer and mortgage loans, increased by 7.2% and 4.0%, respectively. In the consumer
segment, the dynamics of the portfolio was led by credit cards and loans, which recorded
annual growth rates of 7.4% and 7.1%, respectively.
Segment 2011 2012 2013 2014 2015 2016 Var. %
Corporations 26.5 26.1 34.0 41.4 53.5 58.0 8.4%
Large Enterprises 22.4 25.2 29.9 36.3 39.6 38.8 -1.8%
Medium-sized Enterprises 23.9 27.4 32.3 35.3 40.3 40.8 1.2%
Small Enterprises 11.1 13.0 13.3 12.6 14.0 14.1 1.1%
Microenterprises 2.5 2.6 1.9 1.5 3.2 3.2 1.0%
Consumption 22.7 26.4 29.6 33.2 39.1 42.0 7.2%
Mortgage 19.2 23.6 28.6 32.9 37.0 38.5 4.0%
TOTAL 128.4 144.2 169.6 193.1 226.6 235.4 3.9%
Source: SBS
Banking System: Loans per Segment
(in Billions of Soles)
Deposits
The total amount of deposits placed into the banking system amounted to PEN 210,201
million, which is 0.3% lower than the balance recorded in December 2015. Domestic
currency collections grew by 10.9% and showed greater dynamism compared to the
amounts collected in foreign currency (-10.2%). Consequently, dollarization of deposits
stood at 47.6% at the closing of 2016, which is below the 52.9% recorded during the same
period in the previous year, due to the fact that savers increasingly preferred to save their
extras in soles.
In an analysis by product, the expansion of deposits was the result of the contraction of
term deposits by 7.1% per year. On the contrary, savings deposits increased by 7.1%, while
demand deposits and Severance Pay (CTS, by its Spanish initials) deposits recorded growth
rates of 1.1% and 3.3%, respectively.
2011 2012 2013 2014 2015 2016 Var. %
Demand 36.2 40.1 51.9 53.8 62.2 62.8 1.1%
Savings 31.0 34.0 39.8 47.2 54.8 58.7 7.1%
Term 50.4 55.9 66.0 63.9 79.2 73.6 -7.1%
CTS 8.4 10.4 12.7 13.1 14.6 15.1 3.3%
TOTAL 126.1 140.3 170.3 178.0 210.8 210.2 -0.3%
Source: SBS
Banking System: Deposits per Product
(in Billions of Soles)
Financial Indicators
With regard to the quality of the banking system portfolio, delinquency stood at 2.80% as
of December 2016, which is 2.54% higher than the percentage obtained at the closing of
December 2015. This decrease is mainly the result of the medium-sized enterprise and
consumer loan segments, associated with lower payment capacities of companies and
families in a context of lower economic growth in previous periods. The provisions-
coverage ratio, in turn, fell by 160% at the closing of 2016.
It is important to mention that throughout the year, portfolio penalties were carried out
for an amount of PEN 3,876 million, which contributed to mitigate the deterioration of the
loan portfolio.
Profits earned by the banking system4 in 2016 amounted to PEN 7,226 million. In this way,
an increase of PEN 184.9 million (2.6%) compared to the previous year was recorded. The
increase in profits is a reaction to the higher interest income earned, which is partially
compensated by the higher expenses related to interest expense and the lower income
from financial operations, mainly due to a reduction of profits as a result of the exchange
rate difference. At the closing of 2016, capital profitability of the banking system,
measured by the ROAE, was recorded at 19.9%, which is below the level recorded during
the same period of the previous year (22.1%). This can be explained mainly by the
deterioration of the financial margin, partially compensated by greater operational
efficiency.
4 Not including foreign branch offices of the Bank.
Given the continuous expansion of loans, the banking system continued to strengthen its
capital by capitalizing profits and issuing subordinated bonds. Thus, the global capital
ratio5 stood at 15.0% at the closing of December 2016.
5 Not including the requirement for additional effective capital established by Basel III.
Interest Rates
In domestic currency, the average active interest rate increased from 16.09% to 17.16%,
when comparing the closings of 2015 and 2016, respectively. The average passive interest
rate, on the other hand, increased from 2.41% to 2.63% in a similar analysis period. The
rise in the price of loans in domestic currency is associated with a greater risk perception
and with the increase of the passive rates; the latter in line with the strategy adopted by
the banks to collect larger funds in domestic currency.
In terms of foreign currency, the average active interest rate decreased from 7.88% to
7.56%, between the closings of 2015 and 2016, respectively. The average passive interest
rate in foreign currency, on the other hand, remained at 0.33% at the closing of 2016,
which is similar to the rate recorded at the closing of 2015.
2.3 VISION & MISSION
The following is stated in the guidelines established in the 2016–2018 Institutional
Strategic Plan:
VISION
Generating a vision involves understanding the nature of the business in which the
organization operates. Defining a specific future is a challenge to the organization itself,
while acquiring the ability to disseminate the vision serves as a guide and motivation to its
employees to seek to achieve that vision. The long-term vision of the Bank is as follows:
«Be recognized for offering our clients the best experience in financial services,
accompanying them in every stage of their lives or development.»
MISSION
The strategic mission is to apply and implement the strategic intent and, in short, it must
specify the markets and the products with which the organization intends to serve these
markets, efficiently leveraging its resources, skills, and competencies.
The mission of the Bank is defined as follows:
«Providing innovative solutions in a cordial, timely and professional manner in
order to accompany our clients in achieving their aspirations and goals.»
3. MANAGEMENT REPORT
3.1 INCOME STATEMENT
During the 2016 period, Banco de Comercio recorded net profits of PEN 31.6 million,
which is the highest level in terms of profit achieved since the bank started operating.
Compared to the 2015 period, an increase of 23.5% was recorded in the net results,
explained mainly by the increase of interest income earned by 8.0% and by the decrease in
direct-credit provisions by 27.9%.
With this level of net profit, capital profitability (ROAE) ended at 14.1%, which is above the
level obtained during the same period in 2015 (13.2%).
Categories 2015 2016 Var. 16-15
Interest Revenue 174.7 188.7 14.0
Interest Expense 51.5 58.1 6.6
Gross Financial Margin 123.2 130.6 7.4
Direct Loan Provisions 26.1 18.8 -7.3
Net Financial Margin 97.1 111.8 14.7
Financial Service Income 18.7 15.8 -2.8
Financial Service Expenditure 12.3 12.2 -0.1
Services Income & Expenditure - Net
Financial Margin103.5 115.5 12.0
Trading Results (ROF) 13.4 4.6 -8.8
Operating Margin 116.8 120.1 3.2
Administrative Expenditure 70.9 70.5 -0.4
Depreciation & Amortization 6.9 6.5 -0.4
Net Operating Margin 39.0 43.1 4.0
Asset & Provision Valuation 4.3 2.4 -2.0
Operating Income 34.7 40.7 6.0
Other Income & Expenditure 0.1 5.1 5.0
Income before Taxes 34.8 45.8 11.0
NET PROFIT 25.6 31.6 6.0
Source: Administration & Finance Division
Income Statement (in Millions of Soles)
Interest income earned recorded an expansion of 8.0% compared to the 2015 fiscal year,
as a result of the increased income from non-revolving consumer loans, associated with
the greater dynamism of this loan portfolio. Interest expense increased by 12.7%
compared to the 2015 fiscal year, due to the higher needs for funding, mainly in domestic
currency. Consequently, the gross financial margin recorded a growth of 6.0%.
Financial operation results decreased by 65.6%, associated with the lower generation of
profit sharing and with the effect of punctual income in the 2015 fiscal year from credit
portfolio sales.
Administrative expenses, at the closing of 2016, accumulated an amount of PEN 70.5
million. Compared to the 2015 fiscal year, expenses were reduced by PEN 0.4 million,
mainly due to the decrease in personnel expenses by PEN 3.7 million. It is worth
mentioning that the Bank has a continuous expense control and rationalization policy in
place, which has allowed for more efficient use of the resources of the Institution.
3.2 TOTAL LOANS
As of December 2016, Banco de Comercio’s total
direct loans amounted to PEN 1,270.7 million,
presenting an annual growth of PEN 130.0 million. The
dynamism of the loan portfolio could be explained
mainly by the expansion of financing to individuals,
particularly in terms of payroll deduction loans and mortgage loans. Another outstanding
result was the expansion of financing operations to companies through foreign trade. By
contrast, a decrease was recorded in deduction operations.
The indirect loan balance, in turn, stood at PEN 154.7 million, which is PEN 92.9 million
less than the amount recorded at the closing of the previous year, associated with the
decreased dynamics in the construction sector.
2015 2016 Var. 16-15
Direct Loans 1,140.8 1,270.7 130.0
Current account overdrafts 0.3 0.3 0.0
Credit cards 2.6 2.5 -0.1
Discounts 11.2 4.0 -7.2
Loans 1,031.9 1,131.8 99.9
Leasing 5.0 5.3 0.3
Foreign trade 62.3 91.0 28.7
Mortgage 23.4 28.1 4.7
Other 4.1 7.8 3.7
Indirect Loans 247.6 154.7 -92.9
Endorsements 3.9 - -3.9
Letters of guarantee 227.2 146.5 -80.6
Letters of credit 13.1 7.8 -5.3
Bank acceptances 3.5 0.4 -3.1
TOTAL 1,388.3 1,425.4 37.1
Source: Administration & Finance Division
Loans per Product
(in Millions of Soles)
3.3 DEPOSITS
The deposit and liabilities balance of the Bank stood at PEN 1,306.8 million, which is below
the amount of PEN 17.7 million recorded for 2015. This is due to a reduction in the deposit
balance of PEN 14.7 million compared to December 2015.
In an analysis by type of product, this decrease was mainly the result of a decrease in both
term and demand deposits by PEN 30.4 million and PEN 16.0 million, respectively. Savings
deposits, on the other hand, grew by PEN 34.9 million.
Category 2015 2016 Var. 16-15
Deposits 1,289.9 1,275.2 -14.7
Demand 118.9 102.9 -16.0
Savings 165.5 200.4 34.9
Term 792.4 762.0 -30.4
CTS (Severance Pay) 212.8 209.5 -3.3
Debentures 34.7 31.6 -3.0
TOTAL 1,324.6 1,306.8 -17.7
Source: Administration & Finance Division
Deposits & Debentures per Product
(in Millions of Soles)
3.4 FINANCIAL INDICATORS
The quality ratios of the portfolio held by Banco de Comercio recorded an improvement in
2016. The delinquency ratio stood at 3.34% at the closing of 2016, which is below the ratio
recorded as of December 2015 (3.46%). This is the consequence of better judgment in loan
granting, improved recovery management, as well as of the portfolio penalties carried out.
The level of direct-loan portfolio provisions amounted to PEN 68.7 million, which meant a
provisioning ratio of 161.8% of the past-due portfolio, and of 127.5% of the high-risk
portfolio, above the ratios recorded at the closing of December 2015, which were of
170.3% and 110.4%, respectively.
In terms of liquidity indexes, in both domestic currency and foreign currency, the
requirements set by the SBS6 were comfortably met, i.e., as of December 2016, the
liquidity index in domestic currency stood at 22.2%, below the percentage recorded in
December 2015 (28.2%). It is worth mentioning that the liquidity index in domestic
currency reflects faster reimbursement of financing operations in local currency and
adequate liquidity management. The liquidity index in foreign currency, on the other hand,
stood at 79.8%, below the percentage obtained in the previous period (95.2%).
The operational management indicators of Banco de Comercio have improved compared
to December 2015. The operational cost ratio with regard to financial income improved
from 37.7% to 36.5% in December 2016, which reflects the continuous expense control
and rationalization policy as well as a more efficient use of its resources by the Institution.
6 Limits in domestic and foreign currency of 8% and 20%, respectively.
In terms of the solvency level, the global capital ratio7 ended 11.8% above the ratio
recorded as of December 2015 (10.7%). It should be specified that as a result of the capital
strengthening measures, such as capitalization of profits, issuance of subordinated bonds8
and reduced exposure in subsidiaries, the effective capital increased to PEN 268.6 million,
which allowed for continuing the businesses.
Finally, the profitability of Banco de Comercio, measured through the ROAE, ended at
14.1% and the ROAA at 1.8%, at the closing of the 2016 fiscal year. These results are higher
than those obtained as of December 2015 (ROAE of 13.2% and ROAA of 1.6%), which can
be associated with the greater dynamism of the direct loan portfolio and with the more
efficient use of its resources.
Main Indicators 2015 2016
Portfolio Quality
Past-due portfolio / Gross loans 3.46% 3.34%
High risk portfolio / Gross loans 5.34% 4.24%
Provisions / Past-due portfolio 170.3% 161.8%
Provisions / High risk portfolio 110.4% 127.5%
Liquidity
Liquidity Index in domestic currency 28.2% 22.2%
Liquidity Index in foreign currency 95.2% 79.8%
Leverage
Global capital ratio 12.2% 13.7%
Adjusted global capital ratio 10.7% 11.8%
Total Liabilities / Assets (times) 7.3 8.1
Management
Operating cost / Financial income 37.7% 36.5%
Operating cost / Total income 34.3% 33.7%
Operating cost / Financial margin (*) 53.2% 53.7%
Profitability
Financial margin (*) / Financial income 70.8% 68.0%
Net profit (ROA) / Total assets 1.59% 1.79%
Net profit (ROE) / Equity 13.2% 14.1%
(*) The Financial Margin includes ROE and the Deposit Insurance Fund
Source: Administration & Finance Division
Financial Indicators
(Percentages)
7 The adjusted Basel Index includes the requirement established by Basel III for additional effective capital.
8 Third issuance of subordinated bonds for an amount of PEN 20 million.
3.5 RISK RATING
Throughout 2016, Banco de Comercio received the following risk ratings, granted by
Pacific Credit Rating and Equilibrium:
Pacific Credit Rating Equilibrium
Financial Strength B B
Category Definition
Solvent company with great intrinsic financial strength,
adequately positioned within the system, total coverage of
existing risks and little vulnerability to some future risks.
The entity has a good financial and economic structure and
good capacity to pay its debts within the terms and
conditions agreed, but it may deteriorate slightly in case of
changes within the entity, its industrial sector, or the
economy.
Short-Term Deposits Category II EQL 2-.pe
Category Definition
Good quality. Very low probability of non-compliance with
the terms agreed. Very good payment capacity. Even in the
worst-case economic scenario, the risk of non-compliance is
low.
Good quality. The entity reflects good capital and interest
payment capacities within the terms and conditions agreed.
Medium & Short-Term Deposits pA BBB+.pe
Category Definition
Deposits in entities with good credit quality and adequate
protection factors, but greater and more variable risks in
periods of low economic activity.
The company reflects adequate capacity to pay capital and
interest within the terms and conditions agreed. Payment
capacity in this category is more sensitive to possible
negative changes in the economic context than in the higher
categories.
Subordinated Debentures pA BBB-.pe
Category Definition
Deposits in entities with good credit quality and adequate
protection factors, but greater and more variable risks in
periods of low economic activity.
The company reflects adequate capacity to pay capital and
interests within the terms and conditions agreed. Payment
capacity in this category is more sensitive to possible
negative changes in the economic context than in the higher
categories.
It is worth noting that the ratings mentioned
above are subject to permanent revision, in
accordance with the applicable laws. The
risk ratings granted do not represent a
recommendation for buying, retaining or
selling the securities issued by Banco de
Comercio.
4. BUSINESS UNITS
4.1 ENTERPRISE BANKING
In a context of slower economic growth, the operations of Enterprise Banking were
focused on companies with a sound financial position, mainly in economic sectors with
higher growth perspectives, in line with the objective of achieving greater dynamism in
terms of the loan portfolio that contributes to improve the portfolio quality as well as the
delinquency levels.
As of December 2016, loan stock amounted to PEN 448 million, PEN 293 million of which
correspond to direct loans, mainly serving sectors such as construction, services, trade and
industry and to a lesser extent by participating in activities related to the mining, textile
and fishery sectors.
In 2016 an annual growth of direct loans of 13.1% was achieved, thus exceeding the
expansion reached by the banking system (3.2%), which allowed for improved
participation by the market in the segments9 served by Enterprise Banking.
9 Considering the corporate, large and medium-sized enterprises segments.
It should be specified that guidelines were established aimed at a credit evaluation
focused on the risk appetite of the Bank. As a result, an improvement was obtained in the
delinquency level of the Enterprise Banking with a decrease of 112 basis points in 2016
compared to the closing of 2015.
4.2 INSTITUTIONAL BANKING
The Institutional Business Department is oriented towards the search for integrated
solutions for the leading public and private institutions in the country, for which financing
is offered for infrastructure projects, as well as for agreements aimed at collecting and
gathering excess liquidity.
The main clients include representative education bodies,
professional schools, municipality governments, cooperatives,
rural savings banks, and other important Government entities.
To this end, we apply interest rates that are competitive in the
market and have allowed for maintaining an important
position in this segment.
Furthermore, this business unit contributes directly to the
generation of collateral businesses, resulting from the so-
called cross-selling strategy for Personal Banking products
such as payroll deduction loans, CTS deposit collections, and credit cards, among other
products.
Finally, at the closing of 2016, the total deposit balance was PEN 159 million, made up of
institutional funds, collection and demand deposits.
4.3 INTERNATIONAL BUSINESS & CORRESPONDENT BANKS
The International Business and Specialized Product Department, according to the strategic
plan of the Business and Enterprise Banking Division, continued with the strategy of
diversifying and building the loyalty of clients that are segmented in the large and
medium-sized companies, providing them with personalized care and continuous
improvement in the processes aimed at supporting their operations.
The participation in international events has allowed for strengthening the image of Banco
de Comercio, the relationship of the Bank with correspondent Banks and generating
alliances with financial institutions and companies related to the correspondent banking
business.
Another outstanding fact is the obtaining of new credit lines with Bankinter, Spain; Banca
Popolare dell´Alto Adeige, Italy; La Caixa, Spain; Bank of ZhengZhou, China, and Banca
Monte Dei Paschi Di Siena (BMPS), Italy.
Finally, as a result of the strategy lined out, an annual growth of 46% was achieved in
foreign trade operations, at the closing of the 2016 period. Furthermore, the differential of
the correspondent banks for foreign trade financing operations was reduced by 52 basis
points, while the business of counter guarantees with foreign correspondent banks for the
issuance of letters of guarantee, increased significantly, mainly in infrastructure,
construction, supplies, and miscellaneous equipment assembly.
4.4 PERSONAL BANKING & INSTITUTIONAL AGREEMENTS
INSTITUTIONAL AGREEMENT BANKING
In 2016, based on the structural redesign with the new Personnel and Institutional
Agreement Division, the consolidation process of the commercial strategy of Institutional
Agreement Banking was concluded, with a loan portfolio growth of PEN 93.7 million
(11.5%), which contributed to further growth of the income and profitability of the Bank.
As for the Country’s Civil Service and Budget Laws, we can say that their positive influence
on the operativeness of the agreements and on the regulations regarding
overindebtedness of clients, has been maintained. It is worth mentioning that the
delinquency ratio stood at 1.38%, below the average of the system for consumer loans.
During the year, the Bank consolidated its strategy
of greater coverage by opening new information
offices in the cities of Chiclayo and Trujillo, which, in
addition to the offices located in Cusco and
Huancayo, reinforce our commercial presence on
the national territory.
Furthermore, the visits to a larger number of
units and divisions of the Peruvian Armed Forces
and the Police Force increased, the Bank
participated in a variety of social, sports and health activities and provided support to
finance infrastructure works to improve the quality of life of the great family of the
Peruvian Armed Forces and the Police Force. These activities are complemented by
protocol activities developed on the dates of the most important anniversaries of the
military and police institutions and with the participation in important institutional
publications, diffusion and financial education programs.
PERSONAL BANKING
With regard to the traditional products of the Personal Banking segment, we continued
with the strategy based on creating synergy between the segments, stimulating deposits in
the Créditos Mivivienda program and freely available consumer loans, including loans
under agreements and pignorative loans.
In 2016, we made an effort to maintain and improve our commercial relation with the
Agreement segment, enriched over the years and together with the institutions we work
with, which has allowed us to consolidate our position, despite the aggressive commercial
activities developed by the competition throughout the year.
Our main Liability products, on the other hand, continue to be the collection of term and
CTS deposits, the former of which have generated the greatest growth.
4.5 TREASURY
In 2016, the Treasury Department granted interbank loans in local currency for a total
amount of PEN 12,524 million, and PEN 26 million were received, while the total amount
of interbank loans granted in foreign currency was US$ 674 million.
Furthermore, PEN 1,255 million were invested in BCR term deposits in fixed-interest
operations, whereas balances of PEN 7.7 million in CDS BCRP, and PEN 1.2 million are
maintained in Treasury bills.
As for exchange operations, in 2016 purchases were performed for an amount of US$
275.8 million, US$ 165.7 million of which correspond to operations performed by the
Treasury Department with financial entities, US$ 65.5 million to clients of the Enterprise
Banking segment and US$ 44.6 million to Personal Banking clients.
It is worth mentioning that PEN 2.4 million were obtained from foreign exchange profits,
PEN 1.7 million of which were generated by the Treasury Department, PEN 0.5 million by
Enterprise Banking and PEN 0.1 million by Personal Banking.
Finally, it can be concluded that the Treasury Department met all the requirements
demanded by the regulatory bodies (BCRP and SBS), such as reserve and liquidity index
controls.
5. SUPPORT UNITS
5.1 HUMAN RESOURCES MANAGEMENT
As of December 31, 2016, Banco de Comercio had 675 people on its payroll, whereas at
the end of 2015, the Bank employed a total number of 665 people.
2015 2016
Managers 3 6
Officers 292 289
Employees 331 343
Others 39 37
TOTAL 665 675
Number of Personnel
In 2016, important goals were achieved in Human Resources management.
Training
In 2016, a total of 27,672 hours of effective training were performed, which means a 13%
growth compared to 2015. Likewise, each employee received 40.9 hours of training in
2016, with an average investment of PEN 517 that led to the highest hours of training per
employee ratio achieved in the last four years.
Performance Management
In 2016, performance objectives and goals were assigned to 99.6% of the Bank personnel,
which is a highly positive figure considering the fact that it is the second year this model
has been employed for all the personnel. This means a 15% increase in participation
compared to 2015.
On the other hand, 75% of the Bank managers were trained in employee performance
management tools, which reinforced their leadership competencies and abilities to set
objectives, follow-up and feedback aimed at their development.
For the first year, several training and development programs were established entirely
based on the performance results of the previous year. The performance results could also
be aligned with the other human resources processes, such as, career plan management,
succession plan management, recruitment and internal selection, among other processes.
In this way, an attempt was made to promote the development culture, based on the
performance results.
Employer Brand
One of the tools that can be used to improve the
positioning of our employer brand is Facebook. This is
why in 2016, it was suggested we should increase the
level of interaction in this social network, by means of
the «Trabaja en Bancomercio» (Work at Bancomercio)
Facebook page, with the double objective of attracting
the largest possible number of Generation Y
candidates, which is the population where most of the
candidates for the different positions offered by the
Bank can be found nowadays, and positioning the
commercial brand of the Bank. For this reason, it was
our goal to achieve a 40% increase in the number of «likes» of this page. The results
obtained show that as of December 31, 2016, the number of «likes» had increased by
72%.
Award received from the Good Employers Association (ABE)
Banco de Comercio, as a result of its good labor practices, was awarded the Good
Employer Certificate granted by the Good Employers Association (ABE, by its Spanish
initials) composed of companies that are formally organized under Peruvian law, which
main value is the «respect for people» and meet the human resources practices
established by the Association.
To be awarded the certificate, the Bank scored 186 points (the minimum required was 100
points). This score was duly controlled by auditing company SGS and reflects the level of
compliance in terms of salary payment and legal benefits, good practices in human
management related to the performance management processes, training and education
for the position, the development of recognition programs and the guarantee that our
employees are provided with safe and clean environments.
Innovation
Through a project in cooperation with the Universidad de Ciencias y Artes de América
Latina (UCAL, by its Spanish initials), an innovation program was developed inside the
Bank, in order to stimulate and develop an innovative culture among our workers. The
project resulted in the development and implementation of Pretium, an online recognition
tool.
Social Welfare
In 2016, the Bank employees made responsible use of the insurance policy coverage
provided by the Health Care Entity (EPS, by its Spanish initials), obtaining a loss rate of
77%, which is much lower than the goal established of 80%.
5.2 TECHNOLOGY DIVISION
The objective of the Technology Division is to efficiently and effectively manage the
resources, the infrastructure, the institutional technological services and information
security, through the administration, maintenance, as well as the development of
information systems and IT services that support the processes carried out by internal
users, to allow for external users to carry out procedures and to obtain access to services.
To meet the needs of the organization in a more efficient way, the Technology Division has
improved its internal processes, invested in new technologies and worked to make the
Information Security Platform more robust, by optimizing the Computer Center and
expanding the scope of the Alternate Site for contingency purposes, which has allowed for
100% provision of the services by the Main Site.
Furthermore, in the 2016 period, the implementation of the Bank’s new Central System
(Fitbank) was concluded and all the regulatory requirements established by the regulatory
bodies, as well as those set by the bodies in charge of information security and business
continuity, have been complied with.
Finally, in order to support compliance with the Bank’s Strategic Plan, the Technology
Division put into practice the projects defined and provided all the technological support
required to expand coverage in terms of service channels, by opening the information
offices located in Trujillo and Chiclayo.
5.3 OPERATIONS DIVISION
Throughout 2016, the Operations Division has continued to process operations in
accordance with the basic accounting principles, the law and the operational standards,
thus guaranteeing the Institutions adequate recording of the different operations
generated by our clients.
The teamwork with the different areas of the Institution has allowed for meeting the
objectives outlined in the 2016 Strategic Plan based on the efficiency and the
competitiveness that contributed to their optimization.
In 2016, the Operations Division performed efficient management, identifying, dealing
with and controlling the risks that are inherent to each process, thus achieving the
objective within the policies relating to Integrated Risk Management, Business Continuity
Management and Information Security within the Bank.
Achieving the above has been possible thanks to a group of workers with broad experience
in the financial industry, with a high degree of responsibility oriented to a higher quality
service for both our external and internal clients, which has provided us with recognition
from accredited market research institutions.
5.4 PROCESS MANAGEMENT
The active participation by the Process Management Department throughout 2016, was
key to achieving competitive advantages in the business. We would like to point out the
permanent support given to the following aspects:
Implementation of the new Workflow system by Enterprise Banking, which
comprises the following modules: methodized processes, pre-proposals and loan
proposals, credit-line proposals (both creation and use), guarantees, valuated
loans, and client position.
Implementation of the new Workflow system by Personal Banking, which
comprises the following modules: «Maxi-loans», civil agreements, credit card,
mortgage loans, pignorative loans, client position, and loans to the Armed Forces
segment.
Distribution in the integrated platform of the Main Office, applying the Relations
Methodology (organic units - processes).
Participation in workshops on Process Self-evaluation and Operational Risk.
One of the main objectives of the Bank is to continuously improve our processes. For this
reason, in the course of the year, a variety of key processes were optimized by making
them faster and reinforcing controls. The Project Management process was optimized by
applying several innovative strategies that contributed to obtain better results in the last
three years.
For 2017, Banco de Comercio seeks to place this continuous improvement within the
modern management model, for which the Bank will implement the DMAIC methodology
applying the Lean philosophy, making its processes easier and faster while optimizing the
costs involved, aimed at achieving total satisfaction of our clients. It needs to be
mentioned that the Bank is also preparing for a digital transformation in order to set up a
change in the interaction with our clients; a task that requires, among other mechanisms,
the availability of duly redefined processes.
5.5 GLOBAL RISK MANAGEMENT
Banco de Comercio manages risks with the objective of identifying, evaluating, mitigating
and responding to the contingencies that affect the goals established in the Strategic Plan
of the Bank. In order to do so, the Bank has defined its Risk Appetite and Tolerance, and
the evolution of these risks is duly observed and timely disseminated within the
institution, in order to quickly establish corrective measures and line up, as necessary.
The Bank also manages the different risks through policies established by the Board of
Directors, based on the current regulations issued by the regulatory bodies, in accordance
with the typical characteristics of the business of the Bank and the risk appetite. Said
policies are described in the different internal manuals and standards.
The organizational structure of the Bank is in
accordance with the size of the company, in
order to properly deal with risk management,
for which the Board of Directors has been
established as the highest organ. The Bank also
has a Risk Committee as well as a Credit Risk
Management Committee responsible for dealing
with very important aspects, as well as with
details relating to credit risk management, by
reporting their proposals and conclusions to the
Risk Committee.
Finally, it is worth mentioning that in July 2015,
Banco de Comercio obtained the renewal of the
SBS authorization to use the Alternative
Standard Method for Computing the
Operational Risk Capital Charge (ASA) up to May
2017, which has allowed for the Bank to consolidate its maturity in implementing the Best
Operational Risk Management Practices, business continuity and information security.
Furthermore, in 2016, the risk culture was strengthened by focusing on maturing and on
risk mitigation in the processes of the Bank.
CREDIT RISK
Personal Credit Risk
Banco de Comercio has consolidated a risk culture, as well as the credit risk management
of the two large groups of personal business products:
a. loan agreements for members of the Peruvian Armed Forces and the Police Force,
and
b. consumer loans, mortgage loans, and loan agreement for civilians.
Each of these business groups has a model developed especially to serve its clients. We
have admission policies in accordance with the profile of each of the segments outlined
above, which are permanently assessed.
These policies and strategies result in efficient follow-up of the loan portfolios throughout
the validity of the loan, which allows for coordinating the activities with the business and
collection unit segments.
In 2016, the retail portfolio Follow-up Committee was created in order to monitor the
credit behavior of that portfolio and to adopt the necessary preventive and corrective
measures, as applicable. This is very important, as the consumer portfolio is the one which
has the greatest participation within the Bank.
a. Admission
For the Personal Banking products, Banco de Comercio has a decentralized business model
for consumer loan admission, a parametric technological platform, a predictive risk model
that includes a scoring (internal model), as well as autonomy levels for employees who
receive continuous training. All of the above accompanies the growth of the business
according to defined service quality standards.
The Bank is provided with an automatic loan evaluation system, a linking system, in which
our risk policies are systemized, segmented by business group, that are applied performing
a number of qualitative validations (willingness to pay), as well as quantitative calculations
(ability to pay).
b. Follow-up
In 2016, we maintained adequate control and follow-up of the loan portfolio, during which
delinquency, estimated loss, containment, as well as the assignment of provisions and
penalties were monitored, according to variables of each business, including the
preparation of regular compliance reports.
The follow-up and control activities are aimed at anticipating and ensuring performance of
the retail portfolio as a portfolio, as well as timely compliance with and repayment of
loans. Furthermore, they are aimed at anticipating risks and proposing actions to deal with
situations that lead to a departure from the proposed objectives. In addition, as an
integrated part of follow up, risk tolerance limits are monitored, by concentration levels
and expense for provisions in accordance with each business segment.
The Bank has also implemented the administration of overindebtedness risk, which, in
addition to the analyses detailed below, gained strength in 2016 as a result of the inclusion
of the follow-up of a number of variables, such as the number of times of the total
debt/net income.
I. Surveillance levels
II. Sensitivity analysis
III. Stress situations
IV. Harvest analysis
V. Appetite and tolerance to credit risk
c. Collections
The Bank is provided with a management structure aimed at recovery of the retail
portfolio, as part of the loan process, the administration of which is focused on
normalization strategies and on customer service, considering the variations in their ability
to pay. To this end, support is provided to segmentation and priorization in order to limit
decline.
We have differentiated reprogramming and/or refinancing policies, by including variables
that affected the income of our clients and within the regulatory framework. Furthermore,
after having used up the recovery mechanisms, the corresponding penalties are applied,
provided they meet the criteria established by the regulator.
Enterprise Banking Credit Risk
Through its Enterprise Banking segment, Banco de Comercio in the first place meets the
needs in terms of loan operations of corporate, large and medium-sized enterprises.
a. Admission
The segment is organized and prepared to evaluate the credit risk of the segments
mentioned above. It has strengthened credit risk management of companies through the
Enterprise and Market Risk Department, by involving specialized risk analysts by segments,
aligned with the appetite and tolerance levels defined.
As part of non-retail portfolio credit risk management, the Admission Area, by reviewing
the loan proposals submitted by the business employees of the Enterprise Banking
Division, assesses and analyzes the individual loan requests. To this end, in 2016, within
the evaluation process, six areas were implemented to cover both qualitative and
quantitative variables and empower the expert judgment:
a. Market Demand Product
b. Management Shareholders
c. Access to Credit
d. Profitability Benefits
e. Resource Generation
f. Solvency
b. Follow-up
The Bank has implemented mechanisms for adequate control of the loan quality of its
Wholesale Banking portfolio, which are placed under the responsibility of the Risk
Division. Follow-up is based on a continuous process of observation that allows for
detecting incidents in risk development, operations, our clients and their environment in
advance, so we can take actions to mitigate them.
To this end, we continue to permanently
reinforce the Portfolio Surveillance (VICA, by its
Spanish initials) system that establishes four
degrees in terms of the level of concern about
the circumstances observed (follow, reinforce,
reduce, and extinguish). The follow-up agenda is
included in order to anticipate cases of non-
compliance by adopting specific strategies that
allow for ensuring an adequate credit
development. In addition, the limits established
for appetite and tolerance to credit risk of this
business segment are monitored.
This follow-up system includes the analysis and
monitoring of the behavior of the sectors of the
economy and specific products such as
guarantees, real-estate companies, customs agencies, among others, in order to anticipate
changes in exogenous variables such as economic policies, climate change, laws and
decrees, bilateral agreements, etc.
c. Recoveries
As part of the credit risk management strategy related to the wholesale portfolio, the
transfer of the special account and recovery sections was defined, which used to be
located in the business and legal areas, respectively, and led to the creation of the
Enterprise Banking Recovery Section, within the Risk Division.
This Unit centralizes the clients that show non-compliance with their payments and
decline of their financial structure, and the Portfolio Surveillance Committee defines a
special treatment with an exit plan, either due to the feasibility of the company (special
loans) or to the recovery of the credit owed through legal procedures (judicial loans). This
Section is also in charge of recovering the written-off portfolio.
In addition, the clients that were assigned to this Section are monitored by the Enterprise
Banking Recovery Follow-up Committee that reports to the Credit Control Department,
which was created in 2016 in order to determine strategies, speed up processes, and
estimate recovery and/or probable losses.
MARKET & LIQUIDITY RISKS
The Bank manages its market risks based on its exposures in exchange operations and
fixed-interest investments, for which internal models have been developed and adjusted
in order to evaluate the risks of those positions.
With regard to the interest rate risk, continuous follow-up of its indicators is performed,
based on the regulatory requirements in force. As for liquidity risk, a variety of internal
indicators is managed that measure the real liquidity position of the Bank, while strict
follow-up is performed of the limits established to manage such liquidity.
Banco de Comercio has an Asset and Liability Management Committee at management
level that assesses the exposures to the market and liquidity risks. This Committee reports
to the Risk Committee.
Every day, the Risk Division publishes all the indicators that measure the exposure of
Banco de Comercio to the market and liquidity risks, which are informed to the
Management Team to facilitate adequate decision-making.
OPERATIONAL RISK
Operational Risk
At the closing of 2016, the operational risks of the main processes of the Bank were
identified, which, together, are considered to be the work plan of the current year, with
active participation of all people involved in each process. As for loss events, the alignment
with the Central Loss Model (CPRO, by its Spanish initials) established by the SBS was
reinforced.
We have defined a methodology to prioritize the processes in accordance with the
guidelines of Operational Risk Management, that includes processes with significant loss
events, warning signs as well as recommendations made by the Internal and External Audit
teams. The Bank has a technological tool to manage operational risks, loss events, as well
as plans of action and risk indicators.
Business Continuity
In 2016, the business impact analyses (BIA) were carried out in order to identify critical,
important, as well as non-critical processes, to define the recovery strategies for the
critical processes.
Furthermore, the integrated business continuity test was performed, in which the
Alternate Date Processing Center, the Alternate Command Center, and the Alternate
Business Centers were tested. The Crisis Management Committee, the support team, the
business continuity team, and the critical personnel of the different processes, took part in
the test, whereas the Internal Audit team acted as observer of the testing process.
Information Security
In the course of 2016, the inventory of the information assets was carried out, giving
priority to the most critical processes, in order to mitigate threats that could expose the
security of the information held by the Bank. In addition, protection management of the
personal data included in the core system of the Bank was automated, as required by Law
29733, guaranteeing adequate protection of the data of our clients.
5.6 MONEY LAUNDERING PREVENTION SYSTEM
In 2016, Banco de Comercio carried out several activities to adjust its system for
prevention and management of the risk for money laundering and terrorism financing
(LA/FT, by its Spanish initials) to the current regulations, within the terms established in
the Adjustment Plan submitted to the Superintendence of Banking and Insurance, for
which the participation of the different areas of the Bank and the support provided by the
Board of Directors and General Management, who are fully committed to continuously
improving this system, were extremely important.
The LA/FT risk prevention and management system implemented by the Bank is made up
of policies, processes and procedures that provide the Bank personnel with management
tools that allow for them to apply due diligence to clients, workers, suppliers and other
counterparts, in order to prevent the products and services offered from being used for
illegal purposes. The system also includes the application of methodologies that help to
identify the LA/FT risks the Bank is exposed to, in order to duly implement the necessary
measures that allow for mitigating such risks. These methodologies were designed and
applied with the support of Lozano y Vila Consultores, a Colombian company specialized in
LA/FT risk management issues.
One of the main activities performed during the year was the implementation of the
Sentinel Compliance & Risk system, developed by Smartsoft, a company from Costa Rica.
The system has been in use since September 1 and has improved the monitoring process
relating to transactions performed by the Compliance Office, by incorporating rules that
allow for automatic identification of alert signals relating to the type of transaction, based
on a combination of criteria, which were designed considering different typologies relating
to money laundering, as well as their revision through a workflow that makes it possible to
interact with the employees of the clients, so that unusual and/or suspicious operations
can be identified.
On the other hand, in the course of the year, the Training Program regarding the LA/FT risk
prevention and management system was carried out for the members of the Board of
Directors, the Management, and all the Bank employees, while differentiating the profile
of each group and the LA/FT risks to which they could find themselves exposed. This
program included both online and classroom training sessions during which a variety of
concepts were explained regarding the LA/FT risk prevention and management systems,
money laundering typologies, and policies and procedures for the application of due
diligence that allows for getting to know the clients, the workers, the suppliers, and the
correspondent banks.
6. MISCELLANEOUS
6.1 LEGAL FRAMEWORK
Banco de Comercio was founded as part of the corporate reorganization process of former
Banco de Comercio, now Administradora del Comercio S.A., through a Public Deed
recording Simple Reorganization and Change of Name and of Corporate Purpose, Partial
By-Laws Amendment as well as Incorporation of a Banking Entity, dated August 18, 2004,
issued before Sandro Raúl Mas Cárdenas, Notary Public in and for Lima, who substituted
for the principal Notary Public, Javier Aspauza Gamarra, and by a Public Deed recording
Compliance with the Condition Precedent, dated August 31, 2004, issued before Javier
Aspauza Gamarra, Notary Public in and for Lima, both filed with Entry A00001 in Record
11683434 of the Registry of Legal Entities of Registry Office IX in Lima.
The organization and functioning of the Bank were authorized by the Superintendence of
Banking and Insurance, by means of Resolution 1105-2004 of July 9, 2004 and SBS
Resolution 1466-2004 dated August 25, 2004, respectively.
The Bank has its legal domicile in Avenida Canaval y Moreyra No. 452-454, San Isidro,
Lima, Peru. The number of its telephone exchange is 513-6000. Banco de Comercio has
one Head Office, twelve branch offices located in Lima and four branch offices distributed
among the provinces of Arequipa, Pisco, Piura, and Iquitos. In addition, nineteen special
information offices are located in a variety of public and private institutions.
As of December 31, 2016, the subscribed, paid and capital stock of Banco de Comercio was
PEN 191,005,012. Such capital is represented by 191,005,012 common shares with a
nominal value of one sol (PEN) each.
The founding partners of Banco de Comercio were Administradora del Comercio S.A. (with
a contribution of PEN 35,344,000) and Almacenera Peruana de Comercio S.A. (with a
contribution of PEN 500); both legal entities organized under the laws of Peru.
During the General Shareholders’ Meeting held by Banco de Comercio, dated November
10, 2004, an increase of the capital stock of the Bank by PEN 16,550,000 was agreed upon.
This growth increased the capital stock from PEN 35,344,500 to PEN 51,894,500, by
converting shares into obligations created by the second issuance of 500 subordinated
bonds by Banco de Comercio, with a nominal value of US$ 5,000,000, owned by the
Pension Savings Bank of the Military Police. The agreed capital stock increase and the
resulting partial by-laws amendment, approved by the Superintendence of Banking and
Insurance, by means of SBS Resolution 2134-2004 dated December 30, 2004 and SBS
Resolution 6-2005, dated January 5, 2005, were converted into a public deed on February
16, 2005 by Javier Aspauza Gamarra, Notary Public in and for Lima, and were recorded
with Entry B00001 in Record 11683434 of the Registry of Legal Entities of Registry Office IX
in Lima.
Currently, the main shareholder of Banco de Comercio is the Pension Savings Bank of the
Military Police (CPMP, by its Spanish initials), an institution set up as a legal entity with
public rights, organized under the laws of Peru, resulting from a transfer of shares to the
CPMP by Administradora del Comercio S.A., on January 14, 2005, following approval from
the Superintendence of Banking and Insurance through SBS Resolution 8-2005, dated
January 10, 2005. Its current share is of 99.99%.
As of December 31, 2016, share ownership was as follows:
Ownership Number of Shareholders % share
< 1% 1 0.01
1% - 5% 0 0.00
5% - 10% 0 0.00
> 10% 1 99.99
Total 2 100.00
6.2 DESCRIPTION OF THE HOLDING COMPANY BANCO DE COMERCIO IS PART OF
Banco de Comercio is part of the holding company led by the Pension Savings Bank of the
Military Police (CPMP), an institution responsible for administering the Pension Fund of
the Personnel of the Peruvian Armed Forces and the Police Force.
The CPMP was created on December 17, 1974, by virtue of Decree Law 21021, with the
objective of «administering the Pension and Compensation Payment System of its
members», in accordance with the provisions established in Decree Law 19846 of the
Single Unified Pension Regime of the Military and Police Staff. As of January 1, 1974, to
date, CPMP pensioners include both the personnel graduated from the training schools
and the members of the Peruvian Armed Forces and the Police Force.
Investments made by the CPMP were mainly focused on a variety of economic sectors
within the Peruvian economy, including tourism, finance and real-estate. With regard to
the real-estate sector, the CPMP invested in business centers, shopping malls and housing;
the latter were directed at sectors A, B, and C of the population.
Other members of the CPMP holding company are Almacenera Peruana de Comercio S.A.
(ALPECO), founded on July 6, 1981, which operates as a simple storage warehouse, and
Inversiones Banco de Comercio S.A. (INVERPECO), founded on November 5, 1980, which
main activity is buying and selling real estate.
Another member of the CPMP holding company is Administradora del Comercio S.A.
(former Banco de Comercio), founded on January 5, 1967. The current objective of the
company is to carry out all types of collection operations and services, as well as judicial
and prejudicial recoveries, consultancy in debt refinancing and portfolio trading, as well as
billing portfolio management upon the request of third parties.
6.3 OPERATIONS & DEVELOPMENT OF THE BANK
Banco de Comercio is a private enterprise engaged in all the banking activities permitted
under Law 26702, the General Law of the Financial System and Insurance System and
Organic Law of the Superintendence of Banking, Insurance and Private Pension Fund
Administrators. In addition, all other complementary and regulatory provisions
establishing the requirements, the rights, the guaranties, the restrictions and other
conditions with regard to its functioning to which private legal entities and companies that
operate within the financial and insurance systems are subject, also apply to the Bank.
In accordance with the Unified Single International Industrial Classification (CIIU, by its
Spanish initials), Code 6519 corresponds to Banco de Comercio, which refers to other
types of monetary intermediation; a category that includes the monetary intermediation
performed by monetary institutions other than the central banks. Included herein are the
activities performed by the commercial banking segment, by discount banks and savings
banks, as well as institutions specialized in granting loans for home buying, which also
receive deposits.
Finally, it needs to be mentioned that the time of permanence of the Bank is indefinite.
6.4 LISTING ON THE STOCK MARKET
The values registered in the Public Registry of the Stock Market, as of December 31, 2016,
under the mnemonic BANCOMC1, are: PEN 191,005,012.00 in shares with a nominal value
of PEN 1.00, with a capitalization of PEN 191,005,012.00.
The Bank has no current price on the Stock Market.
At the closing of December 2016, the total amount of subordinated bonds issued during
previous years is PEN 60,310,000.00. It is worth specifying that in 2016, Banco de
Comercio performed the third issuance of subordinated bonds for an amount of PEN
20,000,000.00, under the modality of private offer.
The average price of these values at the closing of 2016 is detailed below:
6.5 SIGNING OF THE AUDITED FINANCIAL STATEMENTS
The financial statements corresponding to the 2016 fiscal year have been audited by Caipo
y Asociados S. Civil de R.L., an independent member of KPMG International. The report
issued by the external auditors is attached hereto and contains the general balance as well
as the profit and loss statements, and the judgment of the auditors.
6.6 FINANCIAL INFORMATION PREPARATION & REVISION – PEOPLE IN CHARGE
Those responsible for preparing and revising the financial information for the 2016 period
are the General Manager, Aron Kizner Zamudio; the Administration and Finance Division
Manager, Luis Alberto Guevara Flores; the Head of the Legal Department, Carmen Rosa
Ganoza, and the General Accountant, Nicanor Edgar Choque de la Cruz.
6.7 CULTURE & SOCIAL RESPONSIBILITY
In 2016, Banco de Comercio maintained a policy aimed at supporting the different
activities organized by the Peruvian Armed Forces (FF. AA., by its Spanish initials) and the
Peruvian Police Force (PNP, by its Spanish initials) through topics relating to education and
social responsibility, among others.
FINANCIAL EDUCATION FOR THE PERUVIAN ARMED FORCES & THE POLICE FORCE
Banco de Comercio, always trying to even further strengthen the links with the Armed
Forces and the Police Force, developed a project on financial education which consists in
giving free talks to a variety of units and offices, in order to improve the culture of good
BANCO DE COMERCIO
Fixed Interest
Average ISIN Code Mnemonic Year - Month Opening Cierre Maximum Minimum price
% % % % %
PEP11900D023 BNCOM0BS22 2016-09 96.3300 96.3300 96.3300 96.3300 96.3300
PEP11900D049 BNCOM0BS24 2016-06 87.1100 87.1100 87.1100 87.1100 87.1100
2 0 1 6 P R I C E S Closure %
use of the financial products and services, for the benefit of the personnel working for
those institutions. The idea of the course is to provide the staff with basic knowledge in
terms of loans, savings, credit cards, in addition to giving advice. Since the initiative was
implemented, only two months ago, three talks have already been conducted which were
attended by approximately 120 PNP and FF. AA. officers.
The perspective for next year is to conduct ten talks and to include more than 500 PNP
and FF. AA. officers.
This initiative was led by the Quality Unit of the Marketing Department.
SOCIAL RESPONSIBILITY TOWARDS THE FF. AA. & THE PNP
THROUGH DONATIONS
Our Institution, committed to social aid activities, provided financial assistance to the
«Virgen de Loreto» Association, in their annual activity plan for the Peruvian Air Force, as
well as for poor communities. Through their President we were invited to participate in
the fundraising activity called «Raffle 2016», as a prelude to the first «FAP Blue Talent»
contest.
In this contest the representatives of each FAP unit from the
area of Lima participated, and to this end, a qualifying jury
selected a winner for each category: under 18 and above 18.
The donation consisted of electrical household appliances.
In 2016, we committed ourselves to supporting the
charitable activities of the Stella Maris Association, which
was set up by the wives of both active and retired officers of
the Peruvian Navy, to contribute to the social, financial and
cultural welfare of the members of the navy family and of
the neediest people in the country. The main support was
the organization of the charitable Bingo in order to raise funds and remodel the oncology
department of the Navy’s Health Center called «Cirujano Mayor Santiago Távara.» The
donation consisted of a variety of electrical household appliances and cash.
We participated in the ceremony called «Seventy-fourth anniversary of the creation of Air
Group 11.» On this occasion, our support was used to help to organize the staff lunch
served during the ceremony.
For Mother´s Day, Banco de Comercio donated several presents to the Navy, the Air Force
and the Police Force, in order for them to be raffled during the party organized to honor
the mothers.
The Women’s Committee of the Police and the PNP Welfare Division received the support
from our Institution to organize the Father’s Day celebration as a way to acknowledge the
work performed by the police fathers. Gifts were delivered and raffled among the officers
and sub-officers present at the celebration.
To encourage unity and to strengthen family ties, Banco de Comercio took part in the
Christmas activities organized by the police and military family by donating baskets with
food supplies, panettones, toys, as well as other articles that were distributed among
those who attended the celebrations.
The Bank received the invitation from the Head of the Welfare Division of the Army to
participate in the Children’s Christmas Day 2016, held in December. For this occasion, our
Institution was asked to donate toys to be raffled among the attendees. To this end, we
delivered fifteen (15) men’s and women’s bikes.
In addition, the Board of the Women’s Committee of the Peruvian Police Force, a non-
profit organization, asked the Bank for a contribution by donating bicycles and balls, to be
raffled among the children of the PNP staff during the Christmas festivities. We gave them
two (2) bicycles and one hundred (100) footballs and volleyballs.
We also received an invitation from the General Commander of Education and Doctrine of
the Army to participate in the Christmas celebration for the personnel that work at the
office. As a contribution to the festivities, they asked our Institution to donate fifteen (15)
Christmas baskets to be raffled among the attendees.
The Section of the Army that provides Support to the Disabled organized a Christmas
event to encourage unity and to strengthen the family ties. For this reason, Banco de
Comercio contributed by donating baskets with food supplies and panettones that were
distributed among those present at the celebration.
Through the Head Office of the Administrative Command of the General Army
Headquarters (CGE, by its Spanish initials), Banco de Comercio delivered thirty (30)
Christmas baskets that were handed in to the Administrative Command of the CGE.
Finally, through the Discount Processing Department (DPDT), Banco de Comercio donated
Christmas presents that were raffled among the personnel of the Payroll and Telematics
Declaration Department of the Army Personnel Command (COPERE, by its Spanish initials).
Our Institution donated home theaters, microwaves, AM/FM radios, tablets, and electric
ovens.
PRESENCE OF BANCO DE COMERCIO IN SPORTS ACTIVITIES
Committed to sports activities, our Institution
supported the participation of the higher basketball
team of the School for Peruvian Air Force Officers
(EOFAP, by its Spanish initials) in the Lima Basketball
Champions League, aimed at promoting and
increasing participation in sports activities by its
personnel. The Bank donated the complete sports
uniforms for the EOFAP team.
Support was also provided to the Army Personnel
Command (COPERE) in the celebrations of the 92th
Anniversary of the Battle of Junín and the Day of the
Cavalry Arm. The Bank contributed by donating the
first prize for the horse riding competition called
«Reencuentro» (Reunion).
6.8 GOOD CORPORATE GOVERNANCE
Banco de Comercio considers the implementation of good corporate governance practices
a priority to make sure our company is organized and functions as a model of excellence in
good corporate governance. This is why the Bank, for several years, has worked on
implementing a strengthening and improvement process aimed at participating in the
Good Corporate Governance Index (GCGI).
In accordance with the alignment process, in 2016 the Bank submitted itself to a validation
of its corporate governance practices, with regard to the thirty-one principles of the Good
Corporate Governance Code for Peruvian enterprises. The Bank obtained a total final
score of 83%, exceeding the minimum score of 75%, established based on the validation
methodology of the Lima Stock Market.
Therefore, Banco de Comercio clearly evidences its efforts to adopt and apply good
corporate government practices.
6.9 BRANCH & OFFICES NETWORK
Banco de Comercio has a main office in San Isidro, Lima, ten branch offices in Lima, and
four branch offices located in the interior of the country, in the provinces of Arequipa,
Pisco, Piura, and Iquitos. In addition, twenty-one specialized and information offices are
located inside a variety of public and private institutions.
It is worth mentioning that as part of the commercial activities, together with the
expansion of the businesses, the information offices located in Chiclayo and Trujillo,
started operating in May and August 2016, respectively. Furthermore, in April 2016, the
Paseo Prado branch office10 was closed down for strategic and market reasons.
Branch Offices in Lima
Office Address Business Hours Telephone
ArenalesAv. Arenales 797, Santa Beatriz,
Cercado de Lima
Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6003
ChacarillaCalle Monterrey 188 C.C. Caminos del
Inca, Surco
Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6004
Faucett Av. Elmer Faucett 525, San MiguelMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6005
Jesús María Av. General Garzón 1299, Jesús MaríaMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6006
Jockey
Plaza
C.C. Jockey Plaza, Centro Financiero
Interior, Número CF-B11, Surco
Mon-Fri: from 10:00 AM to 6:00 PM
Saturday: from 10:00 AM to 1:00 PM513-6020
Lampa Jr. Lampa 560, Cercado de LimaMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6008
MirafloresAv. Paseo de la República 4870,
Miraflores
Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6009
San Borja Calle Morelli 201, San BorjaMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6011
San Isidro Av. Canaval y Moreyra 454, San IsidroMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6000
Santa Anita Calle Las Alondras 269, Santa AnitaMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6012
Simón
Salguero
Calle Simón Salguero s/n cdra. 5, esq.
c/Sor Tita, Surco
Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM513-6007
10
Located at Avenida Jorge Basadre 536, San Isidro.
Branch Offices in the Interior of the Country
Office Address Business Hours Telephone
Arequipa Av. Ejército 711, YanahuaraMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM (054) 604-400
Iquitos Jr. Arica 455Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM (065) 223120
Pisco Calle Callao 172-176, PiscoMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6023
Piura Calle Libertad 905, PiuraMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM (073) 606-161
Specialized Branch Offices in Lima and in the Interior of the Country
Office Address Business Hours Telephone
La Marina Central Bazaar Av. Venezuela cdra. 34 s/n, San MiguelMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:15 AM to 1:00 PM 513-6025
Army Headquarters Av. Boulevard s/n, San Borja Mon-Fri: from 9:00 AM to 5:30 PM 513-6014
Air Force HeadquartersAv. 28 de Julio s/n 1.° piso, Block B y
ventanilla extendida Block A, Jesús MaríaMon-Fri: from 8:00 AM to 4:30 PM 513-6015
Municipality of Lince Av. José de Zela 480, LinceMon-Fri: from 8:00 AM to 5:00 PM
Saturday: from 9:00 AM to 1:00 PM 513-7051
Municipality of La MolinaCalle Chalana 152, Urb. Las Lagunas, La
Molina
Mon-Fri: from 8:30 AM to 6:00 PM
Saturday: from 9:30 AM to 1:15 PM 513-6016
Universidad Nacional Federico
Villarreal (UNFV) - Graduate
Jr. Camaná cdra.11, Cercado de Lima.
Interior de la escuela de Post Grado de la
Universidad Nacional Federico Villarreal
Mon-Fri: from 9:30 AM to 8:00 PM
Saturday: from 9:30 AM to 12:30 PM 513-6019
Universidad Inca Garcilaso de
la VegaAv. Arequipa 3610, San Isidro Mon-Fri: from 8:00 AM to 8:00 PM 513-6024
Universidad Inca Garcilaso de
la VegaAv. Bolívar 165, Pueblo Libre Mon-Fri: from 8:00 AM to 4:00 PM 513-6026
La Negrita
Av. Venezuela Mz. C Lote 3-B, Frente al
Centro Comercial La Negrita, Urb.
Ampliación La Negrita - Arequipa
Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM (054) 604-410
SedaparCalle Virgen del Pilar 1701, Cercado de
Arequipa
Mon-Fri: from 7:30 AM to 5:30 PM
Saturday: from 9:30 AM to 12:00 PM (054) 604-414
Arequipa Public Lighting
Services (SEAL, by its
Spanish initials)
Calle Consuelo 310 - Cercado de Arequipa Mon-Fri: from 7:45 AM to 4:45 PM (054) 224-902
Universidad Alas Peruanas
Av. Paseo de la Cultura s/n. Urb. Daniel
Alcides Carrión G-14. Distrito de José
Luis Bustamante y Rivero, Arequipa
Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM
513-6000
Extension
4542
Information Branch Offices in Lima and in the Interior of the Country
Office Address Business Hours Telephone Extension
Callao Naval Base Base Naval del Callao - Callao Mon-Fri: from 9:00 AM to 3:00 PM 513-6000 4246
Air Group No. 8 Av. Elmer Faucett s/n, Callao Mon-Fri: from 8:30 AM to 5:00 PM 513-6000 4245
Las PalmasAv. Jorge Chávez s/n, Surco (ubicada dentro
de la Base Aérea Las Palmas)Mon-Fri: from 8:30 AM to 5:00 PM 513-6000 4810
Ministry of the InteriorPlaza 30 de Agosto s/n, Urb. Córpac, San
IsidroMon-Fri: from 8:00 AM to 4:00 PM 513-6000 4248
Informative Office of the
Peruvian Army
Intelligence School
(COEDE)
Av. Escuela Militar s/n, Chorrillos. Escuela
Militar de Chorrillos - Puerta PrincipalMon-Fri: from 9:00 AM to 6:00 PM 513-6000 3532
CuscoAv. Tomasa Tito Condemayta 162-A2
Wanchaq, Cusco
Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM084-256475 --
Huancayo Av. Giraldez 440, HuancayoMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM513-6000 4890
Chiclayo Calle Vicente de la Vega 1148, ChiclayoMon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM513-6000 4880
Trujillo Jr. Independencia N° 179, Lote A-1, interior B Mon-Fri: from 9:15 AM to 6:00 PM
Saturday: from 9:30 AM to 12:30 PM513-6000 4886