Q2 2025 Credicorp Ltd Earnings Call Transcript
Key Points
- Credicorp Ltd (BAP) reported a strong ROE of 20.7% for Q2 2025, reflecting solid operating performance and disciplined risk management.
- The company is benefiting from Peru's favorable macroeconomic environment, with GDP expected to grow by 3.2% and domestic demand by 4.5% this year.
- Credicorp Ltd (BAP) has successfully diversified its business model, with fee-based and transactional income growing, reinforcing its platform.
- The digital platform Yape continues to scale, now serving nearly 15 million monthly active users, contributing significantly to fee income.
- Asset quality trends remain favorable, with improved credit dynamics and a record risk-adjusted NIM of 5.4%.
- Credicorp Ltd (BAP) is facing a legal challenge with SUNAT, requiring a payment of approximately PEN1.6 billion in alleged unpaid income tax, impacting cash flow.
- The efficiency ratio reflects upfront investments in scaling digital capabilities, which may pressure short-term profitability.
- Loan growth was impacted by the revaluation of Bolivia's balance sheet and currency fluctuations, with a reported 4.1% drop in quarter-end balances.
- The cost of risk is expected to rise in the second half of the year due to stronger retail origination, potentially affecting profitability.
- Despite strong results, the company will not issue extraordinary dividends this year due to the cash impact of the SUNAT payment.
Good morning, everyone. I would like to welcome you to the Credicorp Ltd Second Quarter 2025 Conference Call. A slide presentation will accompany today's webcast, which is available in the Investors section of Credit Corp's website. Today's conference call is being recorded. [Operator Instructions] Now it is my pleasure to turn the conference over to Credicorp's IRO, Milagros Ciguenas. You may begin.
Thank you, and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer; and Alejandro Perez-Reyes, our Chief Financial Officer. Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Cesar Rivera, Chief Risk Officer; Diego Cavero, Head of Universal Banking; [Piero Travesa], CFO of Insurance and Pensions; and [Rocio] Benavides, Mibanco's Chief Financial Officer.
Before we proceed, I would like to make the following safe harbor statements. Today's call will contain forward-looking statements, which are based on
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