Q2 2026 Credicorp Ltd Earnings Call Transcript
Key Points
- Credicorp Ltd (BAP) delivered a strong second-quarter 2026 with a 20.3% ROE, exceeding its prior guidance and reflecting robust execution across its diversified business model.
- Loan growth accelerated to 13.1% year-over-year, driven by strong performance in both retail and wholesale banking at BCP and Mibanco, supported by a favorable macroeconomic environment in Peru.
- Asset quality improved, with the NPL ratio declining to 4.1% and credit card NPLs dropping to 4.1%, driven by better origination quality and enhanced collection capabilities.
- The company raised its medium-term ROE expectation to approximately 22%, citing structural improvements in its ecosystem, including stronger digital capabilities, a scalable business model, and increased contributions from innovation initiatives like Yape.
- Yape continues to scale profitably, with revenue per monthly active user reaching PEN11.1, outpacing expenses, and its contribution to risk-adjusted revenues increasing to 8.9%, while loan penetration remains low, offering significant growth headroom.
- The company raised its 2026 loan growth outlook to around 12% and fee income growth to high-teens, reflecting stronger-than-expected momentum and a constructive economic outlook in Peru.
- Credicorp Ltd (BAP) faces near-term risk from El Niño, which has already led to additional provisions of PEN106 million in Q2 2026, and a severe scenario could moderate loan growth and fee income in 2027.
- The cost of risk increased to 1.9% in Q2 2026, partly due to El Niño-related provisions, and is expected to rise further in the second half of the year, potentially moving toward the higher end of guidance.
- Peru's primary GDP contracted by nearly 5% year-over-year in Q2 2026, driven by El Niño-related disruptions in fishing, agriculture, and primary manufacturing, which could weigh on economic activity.
- Inflation in Peru remains elevated at around 4% year-over-year, driven by higher transportation costs, which could pressure consumer spending and increase operational costs.
- The company's efficiency ratio remains at 45.4%, with operating expenses growing 13.5% year-over-year, driven by investments in IT and innovation, which could limit near-term operating leverage.
- El Niño risk introduces uncertainty, with the strongest impact expected in Q1 2027, and the company acknowledges that a severe event could lead to a more pronounced slowdown, potentially affecting profitability.
Good morning, everyone. I would like to welcome you to the Credicorp Ltd. second-quarter 2026 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 Cigüeñas. 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; Diego Cavero, Head of Universal Banking; Eduardo Montero, Head of Insurance and Pensions; and [RocÃÂo Benavides] CFO at Mibanco.
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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