Credicorp Ltd
NYSE:BAP
Credicorp Ltd
Founded as a financial beacon in the bustling heart of Latin America, Credicorp Ltd. emerged as a formidable player in the region's economic landscape. Headquartered in Lima, Peru, Credicorp straddles a diverse range of financial services, acting as the parent company for a roster of subsidiaries including Banco de Crédito del Perú (BCP), Mibanco, Grupo Pacífico, Prima AFP, and Credicorp Capital. The company's profound understanding of the Latin American market, coupled with its strategic presence across its subsidiaries, enables it to provide a wide array of services ranging from traditional banking and microfinance to insurance and wealth management. This multi-faceted structure allows Credicorp to tap into various revenue streams, significantly contributing to its robust financial performance.
Operating primarily in Peru but with outreach extending into Bolivia, Colombia, and Chile, Credicorp capitalizes on its comprehensive approach to finance. BCP, its flagship company, dominates the Peruvian banking sector, while Mibanco caters to microfinance clientele, fostering financial inclusion for small enterprises. Their insurance arm, Grupo Pacífico, offers life and non-life coverage, effectively managing risk and ensuring client security across the region. Meanwhile, Prima AFP leads in pensions, thus securing retirees' futures, and Credicorp Capital extends investment advisory and asset management services. Ultimately, Credicorp Ltd. thrives by strategically weaving its diverse operations into a cohesive whole that serves to not just meet the myriad financial needs of its clientele, but to bolster economic growth in one of the world's most dynamic regions.
Founded as a financial beacon in the bustling heart of Latin America, Credicorp Ltd. emerged as a formidable player in the region's economic landscape. Headquartered in Lima, Peru, Credicorp straddles a diverse range of financial services, acting as the parent company for a roster of subsidiaries including Banco de Crédito del Perú (BCP), Mibanco, Grupo Pacífico, Prima AFP, and Credicorp Capital. The company's profound understanding of the Latin American market, coupled with its strategic presence across its subsidiaries, enables it to provide a wide array of services ranging from traditional banking and microfinance to insurance and wealth management. This multi-faceted structure allows Credicorp to tap into various revenue streams, significantly contributing to its robust financial performance.
Operating primarily in Peru but with outreach extending into Bolivia, Colombia, and Chile, Credicorp capitalizes on its comprehensive approach to finance. BCP, its flagship company, dominates the Peruvian banking sector, while Mibanco caters to microfinance clientele, fostering financial inclusion for small enterprises. Their insurance arm, Grupo Pacífico, offers life and non-life coverage, effectively managing risk and ensuring client security across the region. Meanwhile, Prima AFP leads in pensions, thus securing retirees' futures, and Credicorp Capital extends investment advisory and asset management services. Ultimately, Credicorp Ltd. thrives by strategically weaving its diverse operations into a cohesive whole that serves to not just meet the myriad financial needs of its clientele, but to bolster economic growth in one of the world's most dynamic regions.
Strong Financials: Credicorp reported record high net income and a full-year ROE of 19% (16.9% for Q4), with diversified growth across banking, insurance, and digital platforms.
Loan Growth: Total loans increased 3.6% QoQ and are guided to grow around 8.5% in 2026, with double-digit growth expected in BCP and Mibanco (excluding Bolivia’s FX impact).
Digital Success: Yape, their digital wallet, doubled its contribution to risk-adjusted revenue YoY, reached nearly 16 million monthly active users, and is scaling lending with over 4.1 million clients receiving loans.
Guidance Raised: 2026 ROE is guided at around 19.5%, with NIM expected at 6.4%–6.7%, risk-adjusted NIM at 5.3%–5.6%, and cost-to-income ratio improving to 45%–46.5%. Fee income is anticipated to grow in the low double digits.
Operational Efficiency: Investments in digital initiatives continue, but management expects operational leverage and improving cost-to-income, guided to 42% over 2–3 years.
Political Outlook: Peru’s upcoming election brings some uncertainty, but management sees improved macro stability and expects more clarity post-election.
