Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Stocks with Increased Earnings Estimates - Klaviyo, Inc. (KVYO) has seen a 12.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Maximus, Inc. (MMS) has experienced a 15.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Capital City Bank Group, Inc. (CCBG) has had a 7.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Credicorp Ltd. (BAP) has seen a 6.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Legal & General Group Plc (LGGNY) has experienced a 6.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - Legal & General Group Plc (LGGNY) has seen a 6.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 4.3%, significantly higher than the industry average of 1.5% [1] - Credicorp Ltd. (BAP) has experienced a 6.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 3.8%, compared to the industry average of 2.6% [2] - Capital City Bank Group, Inc. (CCBG) has reported a 7.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2 - Another Zacks Rank 1 company has a dividend yield of 2.5%, which is above the industry average of 2.2% [3]

Core Viewpoint - Credicorp Ltd. has announced the acquisition of Helm Bank USA for USD 180 million, enhancing its cross-border capabilities and commitment to serving internationally active clients [1][2][3] Company Overview - Credicorp is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, Panama, and the United States [4] - The company has a diversified business portfolio organized into four lines of business: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [4] Acquisition Details - The acquisition involves 100% of Helm Bank's issued shares and is subject to customary price adjustments at closing [1] - Helm Bank, a community bank in Florida, had assets of USD 1.1 billion and shareholders' equity of USD 106.8 million as of September 30, 2025 [2][6] - The transaction aims to strengthen Credicorp's strategy to serve Latin American clients and maintain Helm Bank's community-focused legacy [2][3] Strategic Implications - The acquisition is expected to deepen Credicorp's ability to serve Latin Americans whose financial activities span both their home countries and the United States [3] - Credicorp's CEO emphasized that Helm Bank's community-focused approach aligns with Credicorp's strategy, enhancing its capabilities within the broader ecosystem [3] Helm Bank Overview - Helm Bank USA, founded in 1989, is a Florida state-chartered community bank with a loan portfolio of USD 648.2 million and total assets of USD 1.1418 billion as of September 30, 2025 [6]

Core Insights - Global equity markets experienced significant growth in Q3 2025, with the MSCI ACWI Index increasing by 7.62% [1] - The Aristotle International Equity Fund (Class I-2) reported a return of 1.15% for the quarter, underperforming compared to the MSCI ACWI ex USA Index (6.89%) and the MSCI EAFE Index (4.77%) [1] Company Highlights - Credicorp Ltd. (NYSE:BAP), the largest bank in Peru, showed strong performance with a one-month return of 10.99% and a 52-week gain of 52.97% [2] - As of December 17, 2025, Credicorp's stock closed at $275.60, with a market capitalization of $21.873 billion [2] - Credicorp's robust loan growth, particularly in microfinance and retail, along with stable asset quality and disciplined cost management, contributed to its strong quarterly results [3] - The company's diversified platform in banking, insurance, and wealth management provides competitive advantages in Peru's underpenetrated financial system [3] - Credicorp's focus on long-term value, prudent capital allocation, and disciplined underwriting supports its resilience and potential for value compounding over time [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Credicorp (BAP) - Credicorp currently holds a Momentum Style Score of B, indicating potential as a solid momentum pick [3] - The company has a Zacks Rank of 2 (Buy), which historically outperforms the market when combined with a Style Score of A or B [4] Performance Metrics - Over the past week, BAP shares increased by 3.76%, outperforming the Zacks Banks - Foreign industry, which rose by 1.32% [6] - In a longer timeframe, BAP's monthly price change is 12.68%, compared to the industry's 6.22% [6] - Over the last quarter, BAP shares rose by 5.8%, and over the past year, they increased by 52.89%, while the S&P 500 only moved 3.31% and 13.94%, respectively [7] Trading Volume - BAP's average 20-day trading volume is 318,046 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for BAP have been revised upwards, with no downward revisions, raising the consensus estimate from $23.85 to $25.33 [10] - For the next fiscal year, three estimates have also moved upwards, indicating positive sentiment [10] Conclusion - Considering the performance metrics and earnings outlook, BAP is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a noteworthy option for investors seeking short-term gains [12]

Core Viewpoint - Credicorp Ltd. has announced its schedule for the 2026 quarterly earnings releases and corresponding conference calls, providing important dates for shareholders and the market [1][2]. Earnings Release Schedule - 1Q26 Earnings Release is scheduled for Thursday, May 14, 2026, with the Conference Call on Friday, May 15, 2026 [1]. - 2Q26 Earnings Release is set for Thursday, August 13, 2026, followed by the Conference Call on Friday, August 14, 2026 [1]. - 3Q26 Earnings Release will occur on Monday, November 9, 2026, with the Conference Call on Tuesday, November 10, 2026 [1]. - 4Q26 Earnings Release is planned for Thursday, February 11, 2027, and the Conference Call will be on Friday, February 12, 2027 [2]. Conference Call Details - Details for the Conference Call will typically be provided 15 calendar days prior to each earnings release through a press release [2]. - Each earnings release may be issued after 5:00 p.m. Lima time [2]. Company Overview - Credicorp 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].

Core Insights - Credicorp (BAP) experienced a significant stock market increase of 5.5% on Thursday, which was accompanied by a notable rise in trading volume [1] - The heavy trading volume on that day exceeded 701,000 shares, more than doubling its usual daily trading volume of approximately 300,000 shares [1] - As a result of this performance, Credicorp's Accumulation/Distribution Rating improved from B+ to A- [1] Trading Performance - The stock's price and volume were analyzed over the past three months, indicating a strong accumulation trend [1] - The increase in volume is a positive signal, suggesting heightened investor interest and potential bullish momentum [1]

Financial Performance - Net income attributable to Credicorp increased 14.1% YoY to S/1,738.7 million, with ROE at 19.6%[6] - In 3Q25, Credicorp reported net attributable income of S/1,738.7 million, a decrease of 4.6% QoQ but an increase of 14.1% YoY, with a ROE of 19.6%[35] - Year-to-date, net attributable income rose 22.0%, and ROE for 9M25 stood at 20.1%, excluding extraordinary gains from the Empresas Banmédica transaction[35] Loan and Deposit Growth - Total Loans rose 4.4% YoY and 7.0% FX Neutral, with a QoQ increase of 1.6%[6] - Total Deposits increased 5.9% YoY (+10.8% FX Neutral) and 1.3% QoQ (+3.8% FX Neutral)[6] - Total loans at BCP Stand-alone increased by 1.7% QoQ and 4.6% YoY, reaching S/ 123,089 million by the end of Q3 2025[83] - Total loan disbursements for MSMEs reached S/ 11,812 million in Q3 2025, up from S/ 7,757 million in Q2 2025[78] Interest Income and Margin - Net Interest Income (NII) rose 2.7% YoY to S/1,200 million, with a NIM of 6.57%[6] - Net interest margin (NIM) for 3Q25 was 6.1%, supported by a higher proportion of retail loans and solid transactional funding[40] - Net Interest Income (NII) increased 2.0% QoQ and 2.7% YoY, driven by higher interest on loans and a reduction in interest expenses, totaling S/3,687,829 for the quarter[129] Non-Performing Loans and Provisions - NPL Ratio improved to 4.8%, down 105 bps YoY, reflecting better debt repayments[6] - Provisions decreased 30.5% YoY, driven by improvements in payment performance[6] - The NPL ratio at Credicorp decreased by 15 bps QoQ to 4.8%, driven mainly by loan growth and a reduction in NPL volumes[158] Operational Efficiency - Efficiency ratio at 45.7% for 9M25, on track with full-year guidance[6] - Operating expenses increased by 12.8% YTD, primarily driven by core business and innovation portfolio, while operating income rose by 8.2%[34] - The Efficiency Ratio for 9M25 was 45.7%, aligning with the company's guidance for the year[34] Yape Performance - Yape reached 15.5 million Monthly Active Users, contributing 6.6% to total risk-adjusted revenue[6] - Yape's monthly active users (MAU) reached 15.5 million in 3Q25, with a goal of 18 million by 2028[61] - Yape's revenue-generating transactions doubled over the last three years, with 58.5 transactions per MAU in 3Q25[62] Other Income and Fees - Other Core Income grew 11.9% YoY, supported by strong performance from BCP and Yape[6] - Total Net Fee Income increased by 3.8% QoQ and 8.2% YoY, reaching S/ 1,063,032,000 in 3Q25, with a year-to-date growth of 10.6%[186] - Yape's fee income surged by 91.2% YoY, reflecting strong performance in merchant fees and bill payments[188] Market Position and Strategy - Credicorp reaffirmed its guidance for ROE in 2025 at around 19.0%, based on accelerated loan growth and increased NIM[45] - Credicorp aims for a medium-term ROE of 19.5% and an efficiency ratio close to 42%, driven by income growth outpacing expense growth[51] - The financial segment of Yape accounted for 43% of total revenue generation, with lending increasing its share to 20% from 7% in Q3 2024[71]

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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 [11][15][35] - Net interest income increased by 2.7%, supported by a contraction in interest expenses and an increase in low-cost deposits, leading to a net interest margin (NIM) of 6.6% [16][31] - The cost of risk fell to 1.7%, indicating improved asset quality and risk management [15][16][32] Business Line Data and Key Metrics Changes - Universal Banking and Insurance and Pensions delivered strong results, while Microfinance progressed towards its profitability target [11][15] - Fee-based and transactional income grew, with Yape contributing significantly to the overall revenue [11][24] - Mibanco's profitability rose to 18.8%, supported by increased loan disbursements and improved credit risk management [26] 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 [9][18] - Inflation in Peru remains low, forecasted at 1.8% for 2025, which is within the central bank's target range [10][19] - The macroeconomic environment in the region shows signs of recovery, with positive indicators in Chile and Colombia [10][19] Company Strategy and Development Direction - The company is focused on three key pillars: scaling its digital ecosystem, unlocking growth through business synergies, and maintaining discipline in profitability and capital allocation [5][6][7] - The medium-term targets include an ROE of 19.5% and an efficiency ratio around 42% over the next three to four years [7][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the economic resilience of Peru despite political changes, emphasizing the company's diversified strategy and strong capital position [8][9] - The outlook for 2026 anticipates continued GDP growth, supported by favorable terms of trade and increased private consumption [9][18] Other Important Information - The company aims to expand its digital engagement strategy, with Yape targeting 18 million users by 2028 [24] - The insurance underwriting results showed a year-over-year increase of 23%, driven by improved performance in the life business [29] Q&A Session Summary Question: Regarding asset quality and cost of risk - Analyst inquired about the better-than-expected performance in asset quality and whether the guidance for cost of risk is too conservative [41][42] - Management acknowledged the positive results and indicated that the cost of risk is expected to be around the lower end of the guidance [45][46] Question: On operating expenses growth - Analyst asked about the growth of operating expenses and its breakdown between core business and innovation initiatives [47] - Management confirmed that operating expenses growth is within guidance and will likely slow in the core business while remaining stable in innovation [48] Question: Impact of political uncertainty on growth - Analyst questioned the potential deceleration in growth due to upcoming elections [53] - Management noted historical trends of minimal impact on long-term growth but acknowledged a possible slowdown in the first quarter [55][56] Question: Loan growth guidance - Analyst sought clarification on the loan growth guidance and whether it considers FX adjustments [70] - Management confirmed that the guidance is nominal and includes adjustments for Bolivia's restatement [72] Question: Future contributions from Yape - Analyst inquired about the potential for Yape's contribution to reach double digits by 2026 [64] - Management expressed confidence in achieving this target [65] Question: Outlook for Bolivia post-political shift - Analyst asked about the potential positive impacts of the new government in Bolivia [80] - Management indicated optimism regarding the new government's pro-market stance and its potential benefits for operations in Bolivia [82]