Financial Data and Key Metrics Changes - The company reported a high Return on Equity (ROE) of 20.3%, boosted by extraordinary gains from the acquisition of a joint venture stake, while the operating ROE was 18.4% [10][20][51] - Total assets contracted by 2% due to a revaluation of Bolivia's balance sheet [20][46] - Net interest income increased by 4.3%, with a resilient Net Interest Margin (NIM) of 6.2% despite a year-over-year contraction in asset yields [22][54] Business Line Data and Key Metrics Changes - Loan growth was robust in wholesale banking and short-term loans, with an overall increase of 1.5% in average daily balances [21][12] - Non-performing loans (NPLs) contracted, with the NPL ratio standing at 5.1% [21][48] - Fee income grew by 16%, driven by transactional activity at Yape and BCP [22][50] Market Data and Key Metrics Changes - Peru's GDP grew by 3.9% year-over-year in Q1 2025, supported by private spending and low inflation [25][6] - Inflation remained within the Central Bank's target range at 1.7% year-over-year in April [26] - High-frequency economic indicators such as car sales and imports are growing rapidly, indicating a recovery in private consumption [25][26] Company Strategy and Development Direction - The company is focused on modernizing core systems, expanding digital capabilities, and enhancing client journeys across various business lines [10][14] - Sustainability is deeply integrated into the company's strategy, with initiatives aimed at financial inclusion and environmental risk management [14][103] - The company aims to achieve a structural ROE ambition of 18% by 2026 while expanding access and generating shareholder value [103] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Peru's macroeconomic fundamentals and the potential for growth despite global uncertainties [5][15] - The outlook for Peru's economy remains positive, with expectations of around 3% growth in 2025, assuming global recession risks are contained [15][56] - Management is closely monitoring global developments, including trade tensions and their potential impact on commodity prices [8][16] Other Important Information - The company announced a dividend payout of PEN 40 per share, reflecting strong solvency and support for long-term growth plans [13][24] - The company achieved 5.4% of recent adjusted revenues from new businesses, progressing towards a 10% target by 2026 [11][54] Q&A Session Summary Question: Guidance and ROE Expectations - Analyst inquired about the reasons for not updating guidance despite strong Q1 results and the potential for higher sustainable ROE levels [59] - Management indicated that while they expect to exceed current guidance, global uncertainties, particularly related to tariffs, are a concern [62][63] Question: Cost of Risk and Model Revisions - Analyst asked about the drivers behind the reduction in cost of risk and the potential for further model revisions [71] - Management confirmed that improvements in the macroeconomic environment and adjustments in credit policy have contributed to lower expected losses [74] Question: Loan Growth Dynamics - Analyst questioned the slow loan growth despite strong economic indicators and asset quality improvements [76] - Management explained that loan growth typically lags behind economic recovery and expressed confidence in future acceleration [81][86] Question: Sensitivity to Interest Rates - Analyst requested clarification on the company's sensitivity to interest rate changes [90] - Management provided details on the expected impact of a 100 basis point decline in rates on NIM, emphasizing limited risk [94] Question: Lending Opportunities through Yape - Analyst inquired about lending growth through the Yape platform and the focus on individual versus SME lending [96] - Management highlighted that individual lending is the current focus, with plans to expand into SME lending as capabilities develop [100]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 20.3%, boosted by extraordinary gains from the acquisition of a joint venture stake, while the operating ROE was 18.4% [9][19] - Total assets contracted by 2% due to a revaluation of Bolivia's balance sheet [19][44] - Net interest income increased by 4.3%, driven by lower interest expenses and a growing share of low-cost deposits [21][44] Business Line Data and Key Metrics Changes - Loan growth was robust at 1.5%, primarily in wholesale banking, with expectations for retail segments to accelerate [20][11] - Non-performing loans (NPLs) ratio improved to 5.1%, with a cost of risk falling to 1.6% [20][46] - Fee income rose by 16%, supported by increased transactional activity [21][44] Market Data and Key Metrics Changes - Peru's GDP grew by 3.9% in Q1 2025, indicating a strong economic recovery [23][14] - Inflation remained low at 1.7%, supporting private consumption [24] - High-frequency economic indicators, such as car sales and imports, showed rapid growth, reflecting a positive economic environment [23] Company Strategy and Development Direction - The company is focused on modernizing core systems and expanding digital capabilities to enhance client journeys across various business lines [9][12] - Sustainability is integrated into the company's strategy, with initiatives aimed at financial inclusion and environmental risk management [13][98] - The company aims to achieve a structural ROE of 18% by 2026 while expanding access to financial services [98] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Peru's macroeconomic fundamentals and the potential for growth despite global uncertainties [5][15] - The company is closely monitoring global developments, particularly trade tensions and their potential impact on commodity prices [7][15] - The outlook for Peru's economy remains positive, with expectations for continued growth supported by private investment and recovering real wages [14][25] Other Important Information - The company announced a dividend payout of PEN 40 per share, reflecting strong solvency and long-term growth plans [12][22] - A one-off gain of approximately $236 million was recorded due to the revaluation of a previously held stake [13] - The company is committed to enhancing its risk management capabilities through ongoing projects [12][46] Q&A Session Summary Question: Guidance Update - The management indicated that while current conditions suggest potential for higher ROE, global uncertainties, particularly related to trade, prevent immediate guidance updates [56][60] Question: Cost of Risk and Model Revisions - Management noted that improvements in the cost of risk are due to a positive macroeconomic environment and adjustments in credit models, with expectations for continued lower costs [67][70] Question: Loan Growth Acceleration - Management acknowledged a lag in loan growth recovery but expressed confidence in an upcoming acceleration due to improved economic conditions and increased lending activity [72][78] Question: Sensitivity to Interest Rates - The company provided insights on its sensitivity to interest rate changes, indicating a minor impact on NIM from potential rate cuts [84][87] Question: Lending Focus and Opportunities - The company is currently focusing on individual lending while also considering SME lending opportunities in the future [92][95]

This material includes "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All statements other than statements of historical fact are forward-looking and may contain information about financial results, economic conditions, trends and known uncertainties. Forward-looking statements are not assurances of future performance. Instead, they are based only on our management's current views, beliefs, expect ...

Company Overview - Credicorp Ltd. is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama [4] - The company has a diversified business portfolio organized into four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [4] Upcoming Earnings Release - Credicorp will release its 1Q25 Earnings Report on May 15, 2025, after market close [1] - A webcast/conference call to discuss the results will take place on May 16, 2025, at 10:30 a.m. ET [1] Conference Call Details - The call will be hosted by key executives including the CEO, CFO, and other senior management [1] - Participants are encouraged to pre-register for the webcast to gain immediate access [2] - Dial-in options are available for those unable to pre-register, with specific toll-free and international numbers provided [3] Regulatory Filings - Credicorp filed its Annual Report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC on April 25, 2025 [3] - The report includes audited consolidated financial statements for the years 2022, 2023, and 2024 under IFRS [3]

Core Insights - Credicorp (NYSE: BAP) is the holding company for BCP, which is the largest bank in Peru, maintaining a dominant market share and superior returns on equity over a long period [1] Company Overview - Credicorp operates BCP, the largest bank in Peru, which has sustained a dominant market position [1] - The company has demonstrated consistent superior returns on equity, indicating strong financial performance [1] Market Position - The dominant market share of BCP suggests that there is little indication of significant changes in its competitive position [1]

Core Points - Credicorp Ltd. has filed its Annual Report on Form 20-F for the year ended December 31, 2024, with the Securities and Exchange Commission [1] - The report includes audited consolidated financial statements for the years ended December 31, 2022, 2023, and 2024 under International Financial Reporting Standards (IFRS) [1] Company Overview - Credicorp Ltd. is the leading financial services holding company in Peru, with a diversified business portfolio organized into four primary lines: Universal Banking, Microfinance, Insurance and Pension Funds, and Investment Management and Advisory [3] - The company operates through various subsidiaries, including Banco de Crédito del Perú (BCP), Mibanco, Grupo Pacifico, and Credicorp Capital, and has a presence in Peru, Chile, Colombia, Bolivia, and Panama [3]

Core Points - Credicorp Ltd. declared a cash dividend of S/40.00 per share, totaling S/3,775,292,680.00, based on a net income of S/5,501,254,379.37 for the 2024 financial year [1][2] - The dividend will be paid on June 13, 2025, to shareholders of record on May 19, 2025, without withholding tax at source [1] - The cash dividend will be converted to US Dollars using the exchange rate published by the Peruvian Superintendency of Banks, Insurance and Pension Funds [2] Company Overview - Credicorp Ltd. is the leading financial services holding company in Peru, with a diversified business portfolio across Universal Banking, Microfinance, Insurance and Pension Funds, and Investment Management and Advisory [3] - The company operates through various subsidiaries, including Banco de Crédito del Perú, Mibanco, Grupo Pacifico, and Credicorp Capital, with a presence in Peru, Chile, Colombia, Bolivia, and Panama [3]

Group 1 - Credicorp Ltd. will enter a quiet period for its 1Q25 earnings release starting May 1, 2025, which will last until May 15, 2025 [1] - During the quiet period, the company will refrain from disclosing financial information, commenting on financial results, or responding to related inquiries [1] Group 2 - Credicorp is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama [2] - The company has a diversified business portfolio organized into four main lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [2]

Company Overview - Credicorp (BAP) shares increased by 4.8% to $178.02 in the last trading session, following a broader market rally influenced by President Trump's announcement of a 90-day tariff pause for non-retaliating nations [1] - The stock had previously experienced a 6.1% decline over the past four weeks, indicating a significant turnaround in investor sentiment [1] Earnings Expectations - Credicorp is projected to report quarterly earnings of $5.31 per share, reflecting a year-over-year increase of 4.9% [2] - Expected revenues for the upcoming report are $1.42 billion, which represents a 9.2% increase compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for Credicorp has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [3] - Credicorp currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] - In comparison, Bancolombia (CIB), another stock in the same industry, closed 8% higher at $38.98, although it has returned -12.7% over the past month [3] Industry Context - Credicorp operates within the Zacks Banks - Foreign industry, which is currently experiencing varied performance among its constituents [3] - Bancolombia's consensus EPS estimate has decreased by 1% over the past month to $1.62, representing a 10% decline compared to the previous year [4]

Group 1: Acquisition Details - Credicorp has completed the acquisition of the remaining 50% interest in the joint venture with Banmedica, which was initially established in December 2014 [1][2] - Following the acquisition, Banmedica's 50% interest in the private medical insurance business has been transferred to Pacifico Seguros, while its interest in Pacifico EPS has been transferred to Credicorp's subsidiary Grupo Crédito S.A. [3] Group 2: Strategic Implications - This acquisition enhances Credicorp's ability to create a more sustainable and inclusive economy by improving access to insurance and healthcare, while also advancing financial inclusion in Peru [4] - The company remains committed to investing in the country and the sector, ensuring that Pacifico Seguros and Pacifico EPS continue to be trusted partners for Peruvian families [4] Group 3: Operational Continuity - Customers, policyholders, agents, and other stakeholders can expect a seamless transition with no disruptions to services, product terms, or policy administration following the transaction [5] Group 4: Company Overview - Credicorp is the leading financial services holding company in Peru, with a diversified business portfolio organized into four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [6] - Pacifico EPS is one of the largest corporate health insurance providers in Peru, with over one million clients and a reported net income of S/ 207 million for 2024 [7] - Pacifico Seguros, part of Credicorp, reported a net income of S/ 770 million in 2024 and offers a wide range of insurance products [8]