Credicorp Ltd. Form 6-K Summary
Business Context and Reporting Period
This Form 6-K, dated January 27, 2011, reports material events for Credicorp Ltd., a Bermuda-based financial holding company with primary operations in Peru. The filing notifies the SEC and the Peruvian securities regulator (CONASEV) of Board of Director actions taken on January 26, 2011, regarding shareholder meetings and regulatory capital compliance.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, or margin data. However, it discloses specific capital and equity figures related to regulatory commitments:
- Committed Capital: US$ 517,000,000 (Commitment not to reduce without supervisor authorization).
- Special Reserve: US$ 983,000,000 (Constituted by reducing retained earnings to strengthen equity).
Material Changes
The primary material change is the Board's decision to establish a special reserve of US$ 983 million by reducing retained earnings. This action was taken to comply with capital requirements defined by Resolution SBS N°11823-2010 of the Peruvian Superintendence of Banking, Insurance and Pension Fund Managers. Additionally, the company committed to maintaining its capital base of US$ 517 million without regulatory approval.
Guidance, Outlook, and Corporate Actions
Annual General Meeting (AGM):
- Date: March 31, 2011, at 3:00 p.m. (Peruvian time).
- Location: Banco de Credito del Peru main offices, Lima, Peru.
- Contingency: If quorum is not met, the meeting is postponed to April 7, 2011.
- Record Date: February 14, 2011.
- Approval of audited consolidated financial statements for the year ended December 31, 2010.
- Election of Directors.
- Appointment of external auditors for 2011.
- The company is subject to strict capital maintenance requirements by Peruvian regulators, limiting its ability to reduce capital or the newly created special reserve without authorization.
Investor Verification Checklist
- Verify the impact of the US$ 983 million reduction in retained earnings on the company's distributable earnings and dividend capacity.
- Confirm the details of the audited financial statements for the fiscal year ended December 31, 2010, once released at the AGM.
- Monitor the outcome of the Director elections and the appointment of external auditors for 2011.
- Review the specific terms of Resolution SBS N°11823-2010 to understand the long-term capital constraints imposed on the company.