Core Insights - Credicorp is focused on building a future-oriented ecosystem that drives innovation, expands financial inclusion, and accelerates growth across economic cycles [1]. Group 1: Management Strategy - The management team will discuss leveraging top talent, advanced technology, and disciplined execution to deliver sustainable value and unlock growth opportunities [2]. Group 2: Event Logistics - The agenda includes management comments followed by a 5-minute break and a Q&A session, addressing both in-room and webcast questions [2][3].

Credicorp Investor Day Summary Company Overview - **Company**: Credicorp - **Industry**: Financial Services - **Event**: 2025 Investor Day, marking the 30th anniversary of Credicorp's listing on the New York Stock Exchange Key Points and Arguments Company Growth and Performance - Credicorp has established itself as Peru's leading financial group with an expanding presence in the Andean region, demonstrating resilience through disciplined execution and strategic long-term planning [5][6] - The company has achieved a total shareholder return of 14.1% annually on average since its inception in 1995 [5] - By the end of September, Credicorp outperformed the market, showcasing its ability to decouple from macroeconomic cycles [11] Strategic Priorities - **Four Pillars of Strategy**: 1. **Purpose**: Focus on improving lives through financial inclusion and education [8] 2. **Innovation**: Continuous adaptation and learning, exemplified by the success of Yape, which has over 15 million active users [8] 3. **Culture and Talent**: Investment in digital capabilities and leadership development [9] 4. **Governance**: Strong governance practices linked to long-term sustainability and value creation [9] Financial Inclusion and Innovation - Credicorp aims to expand financial inclusion, targeting 8.8 million new clients by 2028 [51] - Yape is positioned as a key driver for financial inclusion, with aspirations to become a super app and expand into international markets [56] - The company has transitioned from cash-based transactions to cashless, increasing from 24% to 84% [25] Insurance and Growth Opportunities - Pacifico aims to double its client base from 7.5 million to 15 million by 2030, with a focus on becoming the most protected country in Latin America [53] - Insurance penetration in Peru is low at 2.2% of GDP, presenting significant growth opportunities [53] - The bancassurance premiums have grown from $950 million in 2021 to $1.5 billion in 2024, with digital policies issued increasing tenfold [73] Supply Chain Finance - The penetration of supply chain finance in Peru is only 4% of GDP, compared to 14% in Chile, indicating substantial growth potential [62] - The factoring business has grown five times since 2022, with expectations to grow six times in the next five years [63] Technological Integration - Credicorp leverages technology through partnerships with fintechs to enhance product offerings and customer experience [67][70] - Monokera, an insurtech acquired by Krealo, has enabled efficient product design and distribution [67] Future Outlook - The macroeconomic environment in Peru and Latin America is positive, with strong commodity prices and demographic advantages expected to drive growth [35][36] - Credicorp is focused on maintaining a customer-centric approach, leveraging technology to enhance user experience and operational efficiency [39][41] Additional Important Insights - The company emphasizes the importance of adaptability and resilience in leadership and talent acquisition [43] - Credicorp's strategy includes a commitment to sustainability and social responsibility, aiming to drive change in the communities it serves [10] - The company has a strong focus on embedding insurance into daily transactions, enhancing customer engagement and financial literacy [55][96] This summary encapsulates the key insights and strategic directions discussed during the Credicorp Investor Day, highlighting the company's commitment to innovation, financial inclusion, and sustainable growth in the financial services sector.

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Performance & Growth - Credicorp's 30-year average Total Shareholder Return (TSR) is 141%[36] - BCP's cashless transactions have increased 25 times from 2014 to 2024[32] - Credicorp's net income has grown from S/ 3585 million in 2015 to S/ 7200 million in 1H25 annualized[215] - The company aims for Bancassurance to contribute 10% of Credicorp's net income by 2027[97] - Yape aims to increase its monthly revenue-generating transactions per MAU by 10%-60%[103] Digital Transformation & Innovation - BCP's digital clients have increased from 24% in 2019 to 74% in 2024[43] - Technology investments have enabled a 22x increase in transactions[150] - AI-powered chatbots automate 40% of customer inquiries at Contact Center BCP[165] - Origination volumes for SME digital products are up 80%[188] Sustainability & Financial Inclusion - Credicorp has financially included 61 million Peruvians as of June 2025 and aims to reach 80 million by 2028[92, 94] - Credicorp has disbursed over US$ 15 billion in sustainable financing[71]

Core Insights - As of September 17, 2025, three stocks in the financial sector are identified as potentially overbought, which may concern momentum-focused investors [1][2]. Company Summaries - **PagSeguro Digital Ltd (PAGS)**: Reported net revenue of R$5.1 billion and recurring net income of R$565 million for Q2 2025. The stock has gained approximately 19% over the past month, with a 52-week high of $10.78. The RSI value is 82.4, indicating overbought conditions. The stock closed at $10.74, with a momentum score of 58.79 and a value score of 95.74 [7]. - **Credicorp Ltd (BAP)**: UBS analyst raised the price target from $257 to $318, maintaining a Buy rating. The stock has increased around 7% over the past month, reaching a 52-week high of $33.17. The RSI value is 71.7, and the stock closed at $270.79 [7]. - **Galaxy Digital Inc (GLXY)**: The stock gained approximately 3.4% to close at $31.83. The RSI value is 71.7, indicating it is nearing overbought territory [7].

Core Insights - The article compares two financial institutions, Credicorp (BAP) and Nu Holdings Ltd. (NU), to determine which is a better investment opportunity for those seeking undervalued stocks [1]. Valuation Metrics - Credicorp (BAP) has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Nu Holdings Ltd. (NU), which has a Zacks Rank of 3 (Hold) [3]. - BAP's forward P/E ratio is 11.40, significantly lower than NU's forward P/E of 28.58, suggesting that BAP may be undervalued relative to NU [5]. - The PEG ratio for BAP is 0.74, while NU's PEG ratio is 0.83, indicating that BAP has a better valuation considering its expected earnings growth [5]. - BAP's P/B ratio is 2.2, compared to NU's P/B of 8.01, further supporting the notion that BAP is more attractively valued [6]. - Overall, BAP has a Value grade of A, while NU has a Value grade of C, highlighting BAP's superior valuation metrics [6]. Earnings Outlook - BAP is noted for its improving earnings outlook, which enhances its attractiveness in the investment landscape [7].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Credicorp (BAP) as a strong value stock based on various financial metrics [2][3][6] Group 1: Value Investing Trends - Value investing is a preferred strategy for identifying strong stocks across different market conditions, relying on fundamental analysis and traditional valuation metrics [2] - The Zacks Rank system and Style Scores are tools used to identify high-quality value stocks, with a focus on stocks that are undervalued by the market [3] Group 2: Credicorp (BAP) Financial Metrics - Credicorp (BAP) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is a high-quality value stock [3] - BAP has a PEG ratio of 0.69, which is lower than the industry average of 0.76, suggesting it may be undervalued [4] - The company's P/CF ratio is 12.66, significantly lower than the industry average of 16.96, indicating an attractive valuation based on cash flow [5] - BAP's P/CF has fluctuated between 8.15 and 12.66 over the past year, with a median of 9.53, further supporting its undervaluation [5]

Financial Data and Key Metrics Changes - Statutory NPAT for FY 2025 was $28.1 million, including $52.3 million in post-tax significant items, reflecting a challenging year [41] - Pro forma NPAT decreased by 8.4% to $80.4 million, with group revenue declining by 1.5% [41][42] - EBITDA grew by 5.2% compared to the prior period, despite an overall revenue decline [9][41] Business Line Data and Key Metrics Changes - Trade business revenue grew by 1.3% and EBITDA increased by 5.4% [10][25] - Specialist Wholesale experienced a revenue decline of 3.2% but improved EBITDA by 5.2% due to network reconfiguration [26][30] - Retail revenue declined by 3.5%, with a significant impact from the difficult retail environment [33] Market Data and Key Metrics Changes - New Zealand's revenue declined by 3.2% in Australian dollar terms, reflecting challenging economic conditions [37] - The company closed four stores and opened two new locations in New Zealand to adapt to market conditions [38] Company Strategy and Development Direction - The company outlined six strategic imperatives: optimizing the network, one supply chain, customer focus, digitalizing the business, store fitness, and simplifying the business [15][52] - A focus on long-term sustainable profitability and cultural changes within the organization is emphasized [5][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced during the fiscal year but expressed confidence in the company's ability to execute its strategic reset [8][40] - The expectation for FY 2026 is that impacts will skew towards the second half, with a focus on recovery and sustainable performance [55] Other Important Information - The company declared a final dividend of $0.55 per share, representing a full-year payout ratio of 57% [12] - Significant items recognized in FY 2025 included $52.3 million, with 82% being non-cash items [43] Q&A Session Summary Question: Update on trade segment performance and recovery focus - Management confirmed that the trade segment is focused on recovery following disappointing performance in May and June [58][59] Question: Outlook for achieving sales CAGR and EBITDA CAGR targets - Management indicated that while they are not providing guidance for FY 2026, they will communicate progress towards long-term goals as results develop [63] Question: Impact of store closures on profitability - Management acknowledged the need to actively manage the network, including closing underperforming stores, and confirmed that two stores have been closed since July 1 [100][102] Question: Market share performance in trade and retail - Management stated that while market share was stable over the year, they acknowledged losing share in May and June, and emphasized the need for growth in the trade segment [87][88] Question: Performance of the loyalty program and its impact on sales - Management noted that it is early days for the loyalty program, and while they are pleased with initial growth, specific sales impact figures are not yet available [70][72]

Financial Data and Key Metrics Changes - Statutory NPAT for FY 2025 was $28.1 million, including $52.3 million in post-tax significant items, reflecting a challenging year [40] - Pro forma NPAT decreased by 8.4% to $80.4 million, with group revenue declining by 1.5% [40][41] - EBITDA grew by 5.2% year-over-year, despite a decline in pro forma impact by 8.4% [7][40] Business Line Data and Key Metrics Changes - Trade business revenue grew by 1.3% and EBITDA by 5.4%, while Specialist Wholesale saw a decline in revenue by 3.2% but an increase in EBITDA by 5.2% [24][25][30] - Retail revenue declined by 3.5%, with a significant impact from lower discretionary spending and higher operating costs [32][33] Market Data and Key Metrics Changes - New Zealand's revenue declined by 3.2% in Australian dollar terms, reflecting challenging economic conditions [35] - The company experienced a shift away from discretionary retail spending, impacting overall revenue performance [24][32] Company Strategy and Development Direction - The company outlined six strategic imperatives: optimizing the network, one supply chain, customer focus, digitalizing the business, store fitness, and simplifying the business [14][50] - A strategic reset is underway, focusing on long-term sustainable profitability and cultural changes within the organization [5][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in FY 2025 but expressed confidence in the company's ability to recover and grow in FY 2026 [6][51] - The focus will be on driving organic growth and improving operational efficiency through supply chain enhancements and digitization [51][52] Other Important Information - The company declared a final dividend of $0.55 per share, representing a full-year payout ratio of 57% [11] - Significant changes in the balance sheet were made to ensure financial clarity moving into FY 2026 [42][45] Q&A Session Summary Question: Outlook for the trade segment and recovery focus - Management emphasized the importance of recovery in the trade segment, linking it to overall group strategy and sales performance [55][56] Question: Cost allocation and expectations for FY 2026 - Management indicated that a significant reorganization is underway, and clarity on cost allocations will be provided in future quarters [58] Question: Expectations for achieving sales CAGR and EBITDA CAGR - Management committed to providing updates on progress towards five-year goals as results are reported, without giving specific guidance for FY 2026 [61] Question: Impact of loyalty program on sales - Management acknowledged the early stages of the loyalty program and its potential impact on sales, but specific metrics were not available [70][72] Question: Market share trends in trade and retail - Management noted that while market share was stable over the year, there were periods of decline, particularly in May and June [90] Question: Plans for store closures and profitability - Management confirmed ongoing evaluations of store performance and plans to close underperforming locations as necessary [102][105]

Financial Performance - Pro-forma revenue reached $19435 million, a decrease of 15% compared to FY24[15] - Pro-forma gross margin was 465%, a slight increase of 3 bps compared to FY24[15] - Pro-forma NPAT was $804 million, down 84% compared to the previous corresponding period[15] - Statutory NPAT was $281 million, including significant items of $523 million post-tax[17] - Net debt stood at $3648 million, an increase of 82% compared to FY24[15] - Cash conversion rate improved to 818%, compared to 769% in the previous corresponding period[15] Strategic Initiatives - The company closed or relocated 70 sites, including consolidating 23 smaller warehouses[17, 18] - The company opened 21 new branches and stores[17, 18] - $47 million of inventory was centralized as part of the supply chain consolidation[28] - The Autobarn loyalty program was strengthened, adding 500,000 new members, bringing the total to 17 million[29, 30]