Q3 2025 Credicorp Ltd Earnings Call Transcript
Key Points
- Credicorp Ltd (BAP) reported a strong ROE of 19.6% for the third quarter, driven by robust performance across core businesses and innovation portfolio contributions.
- The company is accelerating the scalability and monetization of its digital ecosystem, with platforms like Yape contributing significantly to revenue growth.
- Asset quality has improved, with NPL ratios contracting and a cost of risk falling to 1.7%, supported by enhanced risk management and economic recovery.
- Fee-based and transactional income grew, highlighting the strength and diversity of Credicorp Ltd (BAP)'s platform.
- The macroeconomic environment in Peru is stable, with GDP growth projected at 3.4% for 2025, supported by favorable export prices and domestic demand.
- Political uncertainty in Peru, including the impeachment of the President, poses potential risks to economic stability and business operations.
- Loan growth was negatively impacted by the revaluation of Bolivia's balance sheet and depreciation in BCP's dollar portfolio.
- Operating expenses grew 12.8%, driven by investments in core businesses and innovation portfolio, which could pressure margins if not managed carefully.
- The insurance underwriting results were partially offset by higher claims in the P&C business, impacting overall profitability.
- Despite improvements, the cost of risk is expected to rise as the company shifts focus to higher-yielding segments, which may affect future profitability.
Good morning, everyone. I would like to welcome you to the Credicorp Limited third quarter 2025 conference call. A slide presentation will accompany today's webcast, which is available in the Investors section of Credicorp's website. Today's conference call is being recorded. (Operator Instructions) Now it is my pleasure to turn the conference call 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 Rios, Chief Risk Officer; Cesar Rivera, 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 statement. Today's call will contain forward-looking statements, which are based on management's current expectations and
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