Loading...
01/10 17:29
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with increased ROE, net interest income, and fee income. The shareholder return plan is positive with increased dividends. However, management's reluctance to update guidance and unclear responses in the Q&A indicate some uncertainty. The positive aspects, such as improved asset quality and diversified income streams, outweigh the negatives, leading to a positive sentiment.
ROE 20.3% (up from 18.4% year-over-year excluding extraordinary gains), driven by strong operating results and the acquisition of the remaining 50% stake in the joint venture with Empresas Banmedica.
Net Interest Income Increased by 4.3% year-over-year, spurred by a contraction in interest expenses after interest rates fell and low-cost deposits expanded.
NIM 6.2% (remained resilient despite a year-over-year contraction in asset yields), supported by a lower cost funding structure.
Loan Growth 1.5% year-over-year, primarily driven by short-term loans in wholesale banking.
Cost of Risk Fell to 1.6%, driven by improved payment performance and a favorable economic backdrop.
Fee Income Increased by 16% year-over-year, boosted by transactional activity at Yape and BCP.
Insurance Underwriting Result Rose 17.9% year-over-year, reflecting a stronger reinsurance result in the P&C business.
Efficiency Ratio 45.7%, within guidance range, as strategic investments in innovation and digital capabilities continue to drive diversified income streams.
Operating Expenses Grew 15.6% year-over-year, driven primarily by the core business at BCP and investments in innovation.
NPL Ratio 5.1%, reflecting improved asset quality and proactive measures taken since 2023.
Dividend Payout PEN40 per share, supported by strong solvency and plans for sustained long-term growth.
Total Assets Contracted by 2% due to a non-recurring adjustment related to the revaluation of Bolivia’s balance sheet.
Other Core Income Rose 7% year-over-year, driven by diversified sources of fee generation.
Risk-Adjusted Revenues from New Businesses Achieved 5.4% this quarter, advancing toward a 10% target by 2026.
NPL Coverage Ratio Rose to 107.4%, indicating improved asset quality.
Mibanco's ROE 14.7%, reflecting strengthened asset quality and loan growth.
Grupo Pacifico's Net Income Dropped 16% year-over-year, primarily impacted by an increase in net loss on securities.
Investment Management and Advisory ROE 18.4%, impacted by a one-off charge for equity related to last year’s results.
AUM Growth Increased by 12% in US dollars, contributing to higher income from the Asset Management business.
Yape User Growth: Yape continues to demonstrate strong user growth, adding over 0.5 million new active users per quarter to surpass the 14 million mark in the first quarter of this year.
Digital Capabilities: We’ve modernized core systems, expanded digital capabilities and redesigned key client journeys across Universal Banking, microfinance, insurance and wealth management.
Multi-instalment Loans: Multi-instalment loans, which have better asset quality profile than single standalone loans have accelerated and now represent 50% of loan balances compared to 25% at the beginning of 2024.
Loan Growth: In Q1, loan growth was particularly robust in wholesale banking short-term loans and to a lesser extent, individuals and Mibanco.
Market Share in Low-Cost Deposits: We’ve gained market share in low-cost deposits, reaching 41.3%.
Investment Expectations: Business investment expectations hit a historical peak, reaffirming that private investment is poised to improve.
Risk-Adjusted NIM: Risk adjusted NIM improved year-over-year, driven by lower provisioning.
Efficiency Ratio: Our efficiency ratio is at 45.7% within our guidance range as strategic investments in innovation and digital capabilities continue to drive diversified income streams.
Asset Quality: The improving asset quality reflects proactive measures we’ve taken since 2023, tightening origination standards, repricing risk, strengthening low-risk scheduling and investing in analytics.
Sustainability Framework: We recently published our updated sustainability framework from 2025 to 2030 on our website, a more focused action-oriented framework that reflects our commitment to inclusive sustainable growth.
Acquisition of Empresas Banmedica: We saw extraordinary gains related to the closing of the acquisition of the remaining 50% stake in the joint venture with Empresas Banmedica.
Global Economic Uncertainty: The evolving global environment is marked by trade tensions, global recession risks, and geopolitical factors that could impact Peru's economy.
Impact of Tariffs: President Trump's announcement of a 10% tariff on US imports raises concerns about its broader effects on global growth and commodity prices, particularly for Peru's economy.
Dependence on External Factors: Peru's economy is vulnerable to external factors, with up to 60% of GDP volatility originating from global developments, especially given its reliance on China and the US as key trading partners.
Political Uncertainty: Lingering political uncertainty in Peru could affect economic sentiment and investment expectations.
Commodity Price Volatility: Potential declines in commodity prices due to global economic slowdowns could adversely affect Peru's export revenues, particularly in copper and gold.
Regional Economic Risks: Similar economic challenges are present in neighboring countries like Chile and Colombia, which could indirectly affect Peru's economic stability.
Cost of Risk: The cost of risk is expected to increase as one-time events fade, which could impact profitability.
Market Volatility: Unpredictability in market conditions, driven by external economic factors, continues to pose risks to Credicorp's financial performance.
Loan Growth: Expect loan book year-over-year growth of around 3.5% measured in average daily balances or around 6% measured in quarter end balances, excluding the impact of Bolivia’s balance sheet revaluation.
NIM Guidance: Expect NIM to stand between 6.2% to 6.5% as loan acceleration and a shift towards retail banking support NIM while interest rates trend downward.
Cost of Risk: Cost of risk is expected to approach the lower end of the guidance range as retail origination increases.
Fee Income Growth: Fee income is expected to grow in the low double-digit this year, supported by an acceleration in economic activity and ongoing diversification of income sources.
ROE Guidance: Maintain guidance for ROE at around 17.5% for this year.
Sustainability Initiatives: Published updated sustainability framework from 2025 to 2030, focusing on inclusive sustainable growth.
GDP Growth: Expect Peru’s GDP to grow around 3% in 2025, assuming no global recession.
Dividend Payout: Announced a dividend payout of PEN40 per share.
Efficiency Ratio: Maintain efficiency ratio guidance for 2025.
Dividend per share: PEN40 per share announced for the quarter.
Shareholder Return Plan: Credicorp's strong solvency has enabled the increase in dividends while supporting long-term growth plans.
The earnings call reflects strong financial performance, including record high net income and risk-adjusted NIM. While there are concerns about cost of risk and political uncertainties, optimistic guidance on loan growth, dividends, and strategic initiatives like Yape suggest positive momentum. The Q&A indicates analysts' confidence in management's ability to navigate challenges, supporting a positive stock price outlook.
The earnings call summary and Q&A highlight several positive factors: strong loan growth, optimistic guidance on NIM and ROE, and significant contributions expected from digital initiatives like Yape. While there are concerns about increased risk, the focus on risk-adjusted NIM and profitability is reassuring. No extraordinary dividend is a minor negative, but overall, the strategic focus and growth prospects suggest a positive sentiment for the stock.
The earnings call highlights strong financial performance with increased ROE, net interest income, and fee income. The shareholder return plan is positive with increased dividends. However, management's reluctance to update guidance and unclear responses in the Q&A indicate some uncertainty. The positive aspects, such as improved asset quality and diversified income streams, outweigh the negatives, leading to a positive sentiment.
The financial performance is strong with increased net income and ROE, and a special dividend indicates shareholder value return. The breakeven of Yape and improved loan portfolio quality are positive. However, operational expenses and market competition pose challenges. The Q&A suggests confidence in risk management and ROE targets, though some guidance was unclear. Overall, the positive financial metrics and strategic initiatives outweigh the negatives, leading to a positive sentiment.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
