Q1 2026 Credicorp Ltd Earnings Call Transcript
Key Points
- Credicorp Ltd (BAP) reported a solid ROE of 21.1% for the first quarter, exceeding expectations and reflecting strong fundamentals across core businesses.
- Loan growth was robust, particularly in BCP and Mibanco, with an 8.2% increase in quarter-end balances driven by both retail and wholesale banking.
- The company achieved 9% of risk-adjusted revenues from its innovation portfolio, advancing toward its 10% target by the end of the year.
- Asset quality improved, with the NPL ratio declining to 4.3%, driven by higher debt repayments and improved underwriting standards.
- Net interest income increased by 10.9%, supported by loan portfolio expansion and a contraction in interest expenses due to lower interest rates and an improved funding mix.
- Peru's economic activity has been affected by temporary supply-side shocks, including higher oil prices and adverse weather conditions, leading to a contraction in primary sectors.
- Inflation has increased to 4% year-over-year, driven by transport, energy, and food costs, leading to tighter monetary conditions than previously anticipated.
- The political environment remains uncertain with upcoming presidential elections, which could lead to market uncertainty depending on the outcome.
- The insurance underwriting result fell by 9.1% due to lower premiums in the P&C business and inflationary pressures on expenses for claims in the life business.
- Operating expenses rose by 13.1%, driven by investments in innovation and digital capabilities, which could impact short-term profitability.
Good morning, everyone. I would like to welcome you to the Credicorp Limited first quarter 2026 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 over to Credicorp's IRO, Ms. 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 at the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Cesar Rios, Chief Risk Officer; and Eduardo Montero, Head of Insurance and Pensions.
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 management's current expectations and beliefs and are subject to a number of risks
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