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Credicorp (NYSE:BAP) Q3 2025 Earnings Call November 14, 2025 09:30 AM ET Company ParticipantsAlejandro Perez-Reyes - CFOGianfranco Ferrari - CEOMilagros Cigüeñas - Head of Investor RelationsCesar Rios - Chief Risk OfficerConference Call ParticipantsAndres Soto - AnalystLindsey Shema - AnalystMarcelo Mizahi - AnalystYuri Fernandes - AnalystDaniel Vaz - AnalystAlonso Aramburu - AnalystBrian Flores - AnalystRenato Meloni - AnalystCarlos Gomez - AnalystErnesto Gabilondo - AnalystOperatorGood morning, everyone. ...

Credicorp (NYSE:BAP) Q3 2025 Earnings Call November 14, 2025 09:30 AM ET Company ParticipantsAlejandro Perez-Reyes - CFOGianfranco Ferrari - CEOMilagros Cigüeñas - Head of Investor RelationsCesar Rios - Chief Risk OfficerConference Call ParticipantsAndres Soto - AnalystLindsey Shema - AnalystMarcelo Mizahi - AnalystYuri Fernandes - AnalystDaniel Vaz - AnalystAlonso Aramburu - AnalystBrian Flores - AnalystRenato Meloni - AnalystCarlos Gomez - AnalystErnesto Gabilondo - AnalystOperatorGood morning, everyone. ...

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 19.6%, reflecting strong performance across core businesses and contributions from the innovation portfolio [10][13] - Total assets contracted by 2.1% year-over-year due to the revaluation of Bolivia's balance sheet [13] - Net interest income increased by 2.7%, supported by a contraction in interest expenses and an increase in low-cost deposits [15][31] Business Line Data and Key Metrics Changes - Universal banking and insurance and pensions delivered strong results, while microfinance progressed towards its profitability target [10] - Fee-based and transactional income grew, with gains on foreign exchange transactions rising by 23.4% [15][33] - Yape contributed 6.6% of Credicorp's risk-adjusted revenue, with plans to expand its user base and revenue streams significantly by 2028 [24][25] Market Data and Key Metrics Changes - Peru's GDP growth for 2025 is projected at 3.4%, driven by higher export prices and increased domestic consumption [8][17] - Inflation in Peru is forecasted to remain below 2%, with the central bank's policy rate cut to 4.25% [9][18] - Economic conditions in Chile and Colombia are improving, with GDP growth expected to rise in both countries [9][18] Company Strategy and Development Direction - The company is focused on three key pillars: scaling its digital ecosystem, unlocking growth through business synergies, and executing with discipline on profitability and capital allocation [4][5] - The medium-term targets include an ROE of 19.5% and an efficiency ratio around 42% over the next three to four years [5] - The company aims to deepen financial inclusion and scale monetization through its digital platforms [24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the economic resilience of Peru despite political changes, emphasizing a strong capital and liquidity position [6][7] - The macroeconomic environment is stable, with expectations for continued growth supported by favorable terms of trade and domestic demand [8][9] - The company anticipates a gradual increase in the cost of risk as it shifts towards higher-yield segments in its loan portfolio [41] Other Important Information - The efficiency ratio for the first nine months of the year stood at 45.7%, with operating expenses growing primarily due to investments in innovation [34][36] - The company expects to maintain its full-year ROE guidance at around 19%, reflecting solid core performance and disciplined risk management [38] Q&A Session Summary Question: Regarding asset quality and cost of risk - The company noted that asset quality has improved, with NPLs and cost of risk performing better than expected, and guidance for cost of risk is around 1.8% [40][41] Question: On operating expenses growth - Management indicated that operating expenses growth is planned and will likely be lower in the core business while remaining stable in innovation initiatives [42] Question: About growth expectations in the first quarter of the upcoming year - Management expects some slowdown in the first quarter due to elections but does not anticipate a significant reduction in long-term growth [43][45] Question: Impact of the eighth pension fund withdrawal - The withdrawal is expected to have a positive impact on local funding but may reduce loan growth by about half a percentage point next year [57] Question: Update on Yape's unit economics - The company is scaling multi-installment loans in Yape, which are showing positive business metrics [59]

3Q25 Earnings Conference Call November 2025 Safe Harbor 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 ...

Core Insights - Credicorp (BAP) reported quarterly earnings of $6.17 per share, exceeding the Zacks Consensus Estimate of $6.05 per share, and up from $5.08 per share a year ago, representing an earnings surprise of +1.98% [1] - The company posted revenues of $1.65 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.02%, and an increase from $1.39 billion year-over-year [2] - Credicorp shares have appreciated approximately 43.2% year-to-date, significantly outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.98 on revenues of $1.71 billion, and for the current fiscal year, it is $23.85 on revenues of $6.47 billion [7] - The estimate revisions trend for Credicorp was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Foreign industry, to which Credicorp belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Core Points - Credicorp Ltd. will release its 3Q25 earnings on November 13, 2025, after market close [1] - A conference call to discuss the results will take place on November 14, 2025, at 9:30 a.m. Lima time and Eastern Time [1] - Participants are encouraged to pre-register for the webcast to receive a conference passcode and unique PIN [2] - Those unable to pre-register can join the call via provided dial-in numbers [3] - A replay of the webcast will be available for one year on Credicorp's Investor Relations website [3] - 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 2024 Form 20-F includes audited consolidated financial statements under IFRS [3] - Credicorp is a leading financial services holding company in Peru with operations in multiple countries [4] - The company has a diversified business portfolio across four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [4] - Credicorp has a presence in Peru, Chile, Colombia, Bolivia, and Panama [4]

Core Points - Credicorp Ltd. will enter a quiet period for its 3Q25 earnings release starting October 30, 2025, which will last until November 13, 2025 [1] - During the quiet period, the company will refrain from disclosing financial information or commenting on financial results [1] Company Overview - 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] - Key subsidiaries include Banco de Crédito del Peru (BCP), Mibanco, Grupo Pacifico, and Credicorp Capital [2]

Core Insights - The article compares two banking stocks, Credicorp (BAP) and Banco Santander-Chile (BSAC), to determine which offers better value for investors [1]. Valuation Metrics - Credicorp (BAP) has a forward P/E ratio of 10.82, while Banco Santander-Chile (BSAC) has a forward P/E of 11.14 [5]. - BAP's PEG ratio is 0.70, indicating it is undervalued relative to its expected earnings growth, whereas BSAC has a PEG ratio of 1.00 [5]. - BAP's P/B ratio stands at 2.14, compared to BSAC's P/B of 2.48, suggesting BAP is more favorably valued in terms of market value versus book value [6]. Analyst Outlook - BAP currently holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to BSAC, which has a Zacks Rank of 2 (Buy) [3]. - The improving earnings outlook for BAP positions it as a superior value option in the current market [7].

Core Insights - Credicorp aims to achieve a sustainable Return on Equity (ROE) of 19.5% and a Cost-to-Income (C/I) ratio near 42% within the next three to four years [1][15] - The company has delivered an average total shareholder return (TSR) of 14.1% annually since its NYSE listing, reflecting its resilience and long-term value creation [2][12] Strategic Pillars - The future strategy is guided by four pillars: Purpose (financial inclusion and education), Innovation (evolution of digital payments), Culture and Talent (investing in global talent and digital capabilities), and Governance (strong board structure and sustainability-linked incentives) [3][4] - Credicorp's transformation emphasizes a shift from product-centric to a data-driven, client-first organization, enhancing customer experiences and expanding financial inclusion [5][10] Ecosystem Growth - The company is focused on unlocking 10x growth opportunities by transforming structural complexity into scalable solutions that drive financial inclusion and open new revenue streams [6][7] - Yape, a key platform, aims to triple payment volumes and increase average lending ticket sizes significantly, while Mibanco is evolving into a full-service partner for microenterprises [8][9] Technology and Risk Management - Technology and risk capabilities are now core growth platforms, with investments in cloud migration and AI enabling scalable infrastructure and competitive advantages [10][11] - The Risk Transformation Program aims to convert risk into a competitive advantage by embedding AI and leveraging alternative data for improved credit targeting and dynamic pricing [11] Financial Performance and Future Outlook - Over the past 25 years, Credicorp has strengthened its operating leverage, with clients growing 18 times and risk-adjusted revenue increasing 14 times [13][14] - The company expects to maintain ROEs above the cost of equity across its core businesses, with a focus on scaling profitable inclusion and diversifying revenue streams [15][12]