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1. Company Snapshot

1.a. Company Description

Credicorp Ltd., a financial service holding company, provides various financial, insurance, and health services and products primarily in Peru and internationally.The company's Universal Banking segment offers deposits and current accounts, and various credits and financial instruments to individuals and legal entities.Its Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health, and pensions, as well as provides private pension fund management services.


The company's Microfinance segment manages loans, credits, deposits, and current accounts of the small and microenterprises.Its Investment Banking and Wealth Management segment offers its services to corporations, institutional investors, governments, and foundations; engages in structuring and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market; and structures securitization processes for corporate customers and manages mutual funds.The company was founded in 1889 and is headquartered in Lima, Peru.

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1.b. Last Insights on BAP

Breaking News: Credicorp Ltd. recently reported no significant earnings release. However, Fisher Asset Management LLC decreased its stake in the company by 9.3% during the last quarter, selling 5,082 shares. The fund now owns 49,621 shares valued at $11.09 million. No recent earnings release was found. A recommendation from an analyst is needed to assess the stock. Several analysts have given recommendations on the stock.

1.c. Company Highlights

2. Credicorp Ltd. Delivers Strong Q3 2025 Results

Credicorp Ltd. reported a robust third quarter 2025, with earnings per share (EPS) of $6.17, beating analyst estimates of $6.05. Revenue growth was fueled by a 2.7% increase in net interest income and an 11.9% rise in other core income. The company's net interest margin (NIM) stood at 6.6%, up 9 basis points. The efficiency ratio improved to 46.4%, within guidance. The strong performance was driven by its core businesses, including Universal Banking and Insurance & Pensions, which delivered solid results.

Publication Date: Nov -18

📋 Highlights
  • Strong ROE Performance: Achieved an ROE of 19.6% in Q3 2025, exceeding its medium-term target of 19.5% and reflecting robust core business execution.
  • Yape's Digital Growth: Yape reached 15.5M monthly active users with revenue per user of PEN 7.4, positioning it to contribute double-digit levels to Credicorp’s revenue by 2026.
  • Loan and NIM Expansion: Loan growth increased 1.5% (7% FX-neutral), while NIM rose to 6.6% (+9 bps), driven by higher yields and lower funding costs.
  • Asset Quality Improvements: NPLs contracted across all segments, cost of risk fell to 1.7%, and efficiency ratio stood at 46.4%, aligning with guidance.
  • Macro Outlook Resilience: Peru’s 2025 GDP growth projected at 3.4%, supported by strong exports and consumption, with Credicorp leveraging its diversified risk management to navigate political uncertainties.

Segment Performance

BCP maintained a solid ROE of 25.6%, driven by resilient margins and diversified revenue streams. Mibanco's profitability rose to 18.8%, supported by a rebound in loan disbursements and strengthened credit risk management. Grupo Pacifico's insurance underwriting results remained strong, with an ROE of 20.9%. The Investment Management and Advisory business saw increased profitability, with an ROE of 17.4%.

Loan Growth and Asset Quality

Loan growth was fueled by retail segments, leading to a higher yield interest-earning asset mix. Asset quality showed slight improvement, with NPL volumes contracting across segments. The cost of risk fell to 1.7%. Management expects loan growth to continue, with a guidance of around 6.5% year-over-year.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) of 1.83 and a Dividend Yield of 5.56%, Credicorp's valuation appears reasonable. Analysts estimate next year's revenue growth at 7.8%. As Gianfranco Ferrari, CEO, noted, "the bank is entering the final months of the year with strong operating foundations and a clear strategic direction." With a strong track record of execution and a favorable macroeconomic environment, Credicorp is well-positioned for future growth.

Digital Innovation and Future Prospects

Yape, Credicorp's digital payment platform, continues to generate value, with 15.5 million monthly active users and revenue per user reaching PEN 7.4. Management expects Yape's contribution to reach double-digit levels by 2026, potentially driving earnings accretion in excess of 10%. The company's focus on digital innovation and financial inclusion is expected to drive long-term value for shareholders.

3. NewsRoom

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Fisher Asset Management LLC Has $11.09 Million Holdings in Credicorp Ltd. $BAP

Dec -04

Source: defenseworld.net

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Credicorp Ltd. $BAP Holdings Lowered by Brandes Investment Partners LP

Dec -03

Source: defenseworld.net

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Are Finance Stocks Lagging Credicorp (BAP) This Year?

Nov -28

Source: zacks.com

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BAP vs. NU: Which Stock Is the Better Value Option?

Nov -24

Source: zacks.com

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Credicorp Ltd. (BAP) Q3 2025 Earnings Call Transcript

Nov -15

Source: seekingalpha.com

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Credicorp (BAP) Tops Q3 Earnings and Revenue Estimates

Nov -14

Source: zacks.com

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Is Credicorp (BAP) Stock Outpacing Its Finance Peers This Year?

Nov -12

Source: zacks.com

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BAP or BSAC: Which Is the Better Value Stock Right Now?

Nov -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.59%)

6. Segments

Universal Banking

Expected Growth: 12%

Credicorp Ltd.'s Universal Banking segment growth of 12% is driven by Peru's economic expansion, increasing middle-class demand for financial services, and the company's strategic expansion into microfinance and digital banking. Additionally, the segment benefits from a diversified revenue stream, strong brand recognition, and a solid risk management framework.

Microfinance

Expected Growth: 11%

Credicorp Ltd.'s microfinance growth is driven by increasing financial inclusion, rising demand for credit from low-income individuals, and expansion into underserved markets. Additionally, strategic partnerships, digitalization, and efficient risk management contribute to the 11% growth rate.

Insurance and Pensions

Expected Growth: 10%

Credicorp Ltd.'s Insurance and Pensions segment growth of 10% is driven by increasing demand for retirement savings, favorable demographics, and a growing middle class in Peru. Additionally, the company's diversified product offerings, strong distribution channels, and effective risk management practices contribute to its growth momentum.

Investment Banking and Wealth Management

Expected Growth: 9%

Credicorp Ltd.'s 9% growth in Investment Banking and Wealth Management is driven by increasing demand for M&A advisory services, growth in asset under management, and expansion into new markets. Additionally, the company's strong brand reputation, diversified product offerings, and strategic partnerships have contributed to its growth momentum.

Other

Expected Growth: 8%

Credicorp Ltd.'s 8% growth in 'Other' segment is driven by increasing demand for insurance products, expansion of microfinance services, and growing investments in digital payment platforms. Additionally, strategic partnerships and acquisitions have contributed to the segment's growth, along with favorable regulatory changes in Peru and other Latin American markets.

7. Detailed Products

Banco de Crédito del Perú (BCP) Banking Services

Provides a wide range of banking services including personal and commercial banking, credit cards, loans, and investment products

Microfinanzas Prisma Microfinance

Offers microfinance services, including microloans, savings, and insurance products, to low-income individuals and micro-entrepreneurs

Pacifico Insurance Services

Provides a range of insurance products, including life, health, and property insurance, to individuals and businesses

Credicorp Securities Brokerage Services

Offers brokerage services, including stock trading, investment advice, and portfolio management, to individual and institutional investors

Credicorp Asset Management Investment Products

Provides a range of investment products, including mutual funds, pension funds, and private equity funds, to individual and institutional investors

8. Credicorp Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Credicorp Ltd. operates in a highly competitive market, but the threat of substitutes is moderate due to the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Credicorp Ltd. has a large customer base, but the bargaining power of customers is high due to the availability of alternative financial services providers.

Bargaining Power Of Suppliers

Credicorp Ltd. has a diversified supplier base, and the bargaining power of suppliers is low due to the company's large scale of operations.

Threat Of New Entrants

The threat of new entrants in the financial services industry is moderate due to the high barriers to entry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry in the financial services industry is high due to the large number of players and the highly competitive nature of the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.19%
Debt Cost 9.38%
Equity Weight 54.81%
Equity Cost 9.38%
WACC 9.38%
Leverage 82.43%

11. Quality Control: Credicorp Ltd. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Credicorp

A-Score: 7.2/10

Value: 4.7

Growth: 7.1

Quality: 7.3

Yield: 7.5

Momentum: 8.5

Volatility: 8.0

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Luzerner Kantonalbank

A-Score: 6.9/10

Value: 5.2

Growth: 5.2

Quality: 5.0

Yield: 6.9

Momentum: 9.0

Volatility: 10.0

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Stock-Card
BCP

A-Score: 6.1/10

Value: 6.4

Growth: 5.2

Quality: 6.6

Yield: 3.8

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

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Intercorp Financial Services

A-Score: 5.9/10

Value: 4.4

Growth: 1.7

Quality: 6.9

Yield: 6.2

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

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Bank of Ireland

A-Score: 5.9/10

Value: 7.3

Growth: 5.2

Quality: 5.7

Yield: 3.1

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

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Zuger KB

A-Score: 5.2/10

Value: 2.9

Growth: 5.8

Quality: 5.0

Yield: 5.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

271.91$

Current Price

271.91$

Potential

-0.00%

Expected Cash-Flows