ASB Bank Corp.

Overview Key strengths Key risks Highly strategic subsidiary of Credicorp Ltd., which gives ASB financial support if needed. Low business diversification by segment and region. Sound asset quality, given its highly collateralized loan portfolio structure and high-quality clients. Small participant in a competitive banking system. Funding base mainly composed of customer deposits. Our view of ASB's group status reflects a good track record of support from its parent company and the integration of the bank's business lines into the group's overall strategy. In this sense, we think that its parent company could provide additional financial flexibility to the bank through capital injections or credit lines amid an adverse economic scenario. In our opinion, the bank's capitalization will remain well above

...In S&P Global Ratings' view, ASB Bank Corp. (ASB) will remain key to Credicorp Ltd.'s (###- /Stable/--) long-term strategy in Central America. Our view of ASB's group status reflects a good track record of support from its parent company and the integration of the bank's business lines into the group's overall strategy. In this sense, we think that its parent company could provide additional financial flexibility to the bank through capital injections or credit lines amid an adverse economic scenario. We expect healthy capitalization, despite high dividends. In our opinion, the bank's capitalization will remain well above Panama's regulatory minimum of 8.5%. The latter reflects our view that the bank's internal capital generation will support modest business growth and a dividend policy in line with its historical average. ASB's asset quality will remain solid and compare positively with the Panamanian banking system. We believe ASB will continue maintaining a high percentage of its loans...

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