Download PDF

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.

Show Full description

1.b. Last Insights on BAP

Credicorp's recent performance was driven by strong growth prospects, robust operating performance, and digital transformation. The company's Q3 2025 results showed 18.7% YoY profit growth, improved NPL ratio to 4.8%, and expanded net interest margin to 6.6%. Digital platforms, especially Yape, accelerated income diversification and cost efficiency, with digital transactions now 97% of total volume. Credicorp is rated a buy, with a strong buy rating upgrade by Zacks, citing growing optimism about earnings prospects. However, Q4 earnings missed estimates, with EPS of $5.88 vs. $6.61 expected.

1.c. Company Highlights

2. Credicorp's Earnings Report: A Closer Look at Financial Performance

Credicorp reported revenues that were largely in line with expectations, but the actual EPS came out at $5.88, slightly below estimates of $6.61. The bank's financial performance was marked by an 8.5% loan growth, excluding the impacts of foreign exchange and the Bolivia book. The guidance provided for 2026 suggests continued growth, with double-digit growth expected for BCP and Mibanco, driven in part by the inclusion of Yape's performance within BCP's book. As Alejandro Perez-Reyes noted, "we're expecting double digit growth for this year" for BCP and Mibanco, indicating a positive outlook for the coming year.

Publication Date: Feb -18

📋 Highlights
  • Ruta del Lima Exposure: Less than 1% portfolio exposure with potential 5-10% bond payment via arbitration, no short-term payment expected.
  • Pension Plan Withdrawals: 11B/25B withdrawn; 0.4% GDP impact projected if fully consumed, payments to continue until March.
  • Loan Growth Guidance: 8.5% growth excluding FX, double-digit growth for BCP/Mibanco, 0.5% 2026 loan growth vs. 0.4% credit decline.
  • Yape Integration: Yape incorporated into BCP, expected to triple in size, already included in BCP’s double-digit growth projections.
  • Cost Efficiency: Cost-to-income ratio to improve via accelerated income from digital initiatives and ongoing business investments.

Loan Growth and Guidance

The loan growth guidance for 2026 is around 8.5%, similar to the growth seen in 2025 when excluding the impacts of foreign exchange and the Bolivia book. However, the overall guidance for Credicorp includes the Bolivia book, where a significant impact from exchange rates is expected. The management is optimistic about the growth prospects, with BCP and Mibanco expected to drive this growth. Yape, being part of BCP, is also expected to contribute significantly, with its book likely to triple in the next couple of years.

Valuation and Dividend Yield

Credicorp's valuation metrics indicate a relatively attractive position, with a P/E Ratio of 12.83 and a P/B Ratio of 2.32. The Dividend Yield stands at 4.18%, providing a decent return for investors. The ROE is quite healthy at 19.07%, indicating efficient use of equity. These metrics suggest that while the stock may not be undervalued, it offers a stable return profile, supported by its dividend yield and reasonable valuation multiples.

Outlook and Key Drivers

The outlook for Credicorp appears positive, driven by loan growth and the expected performance of its subsidiaries, particularly BCP and Mibanco. The inclusion of Yape's growing book within BCP is a key driver, along with the anticipated reduction in cost-to-income ratio. The management expects to continue investing in disruptive initiatives while improving capabilities to serve clients better. With a healthy ROE and a reasonable valuation, Credicorp seems well-positioned for the coming year, supported by its strategic priorities and financial performance.

3. NewsRoom

Card image cap

Baron Emerging Markets Fund Q4 2025 Portfolio Activity

Feb -22

Source: seekingalpha.com

Card image cap

BIT Capital GmbH Boosts Position in Credicorp Ltd. $BAP

Feb -20

Source: defenseworld.net

Card image cap

Here is Why Growth Investors Should Buy Credicorp (BAP) Now

Feb -16

Source: zacks.com

Card image cap

Credicorp Ltd. (BAP) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

Card image cap

Credicorp (BAP) Lags Q4 Earnings Estimates

Feb -13

Source: zacks.com

Card image cap

Credicorp (BAP) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Feb -05

Source: zacks.com

Card image cap

Credicorp Ltd.: Credicorp's Earnings Release and Conference Call 4Q25

Jan -30

Source: globenewswire.com

Card image cap

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

Jan -26

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: 7.1/10

Value: 4.9

Growth: 7.1

Quality: 8.0

Yield: 6.9

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
BCP

A-Score: 6.5/10

Value: 6.9

Growth: 6.7

Quality: 6.9

Yield: 3.1

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Luzerner Kantonalbank

A-Score: 6.3/10

Value: 3.5

Growth: 4.6

Quality: 4.5

Yield: 6.2

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Intercorp Financial Services

A-Score: 5.7/10

Value: 4.4

Growth: 1.7

Quality: 6.8

Yield: 6.2

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Bank of Ireland

A-Score: 5.5/10

Value: 4.9

Growth: 6.2

Quality: 4.0

Yield: 3.1

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Zuger KB

A-Score: 5.3/10

Value: 2.9

Growth: 5.7

Quality: 5.2

Yield: 5.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

345.39$

Current Price

345.39$

Potential

-0.00%

Expected Cash-Flows