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