Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Credicorp (BAP) currently holding a Momentum Style Score of A [2] - The Zacks Rank system complements Style Scores, with BAP rated 2 (Buy), indicating potential for outperformance in the market [3] Group 2: Performance Metrics of Credicorp (BAP) - BAP shares have increased by 1.08% over the past week, while the Zacks Banks - Foreign industry has risen by 1.6% during the same period [5] - Over the last month, BAP's price change is 11.88%, outperforming the industry's 4.52% [5] - In the last quarter, BAP shares rose by 23.98%, and over the past year, they increased by 49.76%, compared to the S&P 500's gains of 8.58% and 17.39% respectively [6] Group 3: Trading Volume and Earnings Outlook - BAP's average 20-day trading volume is 355,834 shares, which serves as a bullish indicator when combined with rising stock prices [7] - In the past two months, three earnings estimates for BAP have increased, raising the consensus estimate from $22.28 to $23.31 [9] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions noted [9] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, BAP is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a promising investment opportunity [11]

Group 1 - Crown Castle (CCI) is currently outperforming its peers in the Finance sector with a year-to-date return of approximately 10.8%, compared to the sector average of 10.7% [4] - The Zacks Rank for Crown Castle is 2 (Buy), indicating a positive outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for CCI's full-year earnings has increased by 2.2% over the past quarter, reflecting improved analyst sentiment [4] Group 2 - Crown Castle belongs to the REIT and Equity Trust - Other industry, which has seen a year-to-date gain of about 0.8%, indicating that CCI is performing better than its industry peers [6] - Another notable stock in the Finance sector is Credicorp (BAP), which has achieved a year-to-date increase of 38.1% and also holds a Zacks Rank of 2 (Buy) [5] - The Banks - Foreign industry, to which Credicorp belongs, has performed significantly well with a year-to-date increase of 34.9% [6]

Financial Performance - Net income attributable to Credicorp increased 36.1% YoY and 2.5% QoQ to S/1,822.0 million, resulting in a record ROE of 20.7%[7] - BCP's net profit for 2Q25 reached S/ 1,864,498, reflecting a 36.4% year-over-year increase[50] - Operating income grew by 7.5% year-over-year, reaching S/ 5,529,301 in 2Q25[50] - Total Income for Credicorp reached S/282.4 million in 2Q25, up 20.4% from 1Q25 and 107.4% from 2Q24[65] - The company revised its 2025 ROE guidance to approximately 19.0%, driven by retail loan growth and a resilient NIM[49] Loan and Deposit Trends - Total loans declined 0.3% YoY but increased 2.6% FX Neutral, with a QoQ rise of 1.2% driven by Retail Banking and Mibanco[7] - Total deposits rose 6.2% YoY (+10.2% FX Neutral) but contracted 0.5% QoQ, with low-cost deposits accounting for 71.8% of total deposits[7] - Total loans at BCP Stand-alone decreased by 0.2% QoQ and 4.1% YoY, with quarter-end balances at S/ 120,999 million as of Jun 25[89] - Total loan balance for micro and small businesses at Mibanco Peru reached S/ 11,356 million in 1Q24, with a slight increase to S/ 11,894 million projected for 1Q25[79] - Total loans increased to S/ 93,110 million, reflecting a 1.6% QoQ and 0.5% YoY growth, with a notable decline in foreign currency loans by 11.8% YoY[97] Asset Quality and Risk Management - Non-Performing Loan (NPL) ratio improved 102 bps YoY to 5.0%, with provisions declining 47.4% YoY due to better payment behavior and risk management[7] - Provision for credit losses decreased by 47.4% year-over-year, amounting to S/ (575,159) in 2Q25[50] - The coverage ratio of NPLs increased to 109.5%, reflecting a 1450 basis points improvement year-over-year[50] - Write-offs decreased by 18.9% QoQ and 41.5% YoY, indicating improved loan performance[159] - The NPL ratio at Credicorp fell 102 bps YoY to 5.0%, with BCP Stand-alone experiencing a drop of 117 bps across all segments except Mortgage[167] Revenue Sources and Innovations - Yape reached 14.9 million Monthly Active Users (MAU), contributing 5.5% to Credicorp's total risk-adjusted revenue[7] - In 2Q25, Credicorp's innovation portfolio represented 6.2% of its risk-adjusted income, up from 5.4% in 1Q25 and 3.4% in 2Q24, indicating progress in diversifying revenue sources[56] - Total Payment Volume (TPV) for Yape increased to S/103.4 billion in 2Q25, a 12.9% quarter-over-quarter growth and a 66.3% year-over-year increase[62] - The Financial business generated 44% of Yape's revenue in 2Q25, with the loan business increasing its share from 4% in 2Q24 to 18% in 2Q25[75] - Total Net Fee Income increased to S/ 1,024,553, reflecting a QoQ growth of 3.1% and a YoY growth of 8.2%[195] Operating Expenses and Efficiency - Operating expenses increased 11.4% YoY, leading to an Efficiency Ratio of 44.9% for 1H25, in line with full-year guidance[7] - Total expenses rose by 9.8% year-over-year, totaling S/ (2,630,310) in 2Q25[50] - Credicorp's total operating expenses were S/196.6 million in 2Q25, a 9.7% increase from 1Q25 and a 40.9% increase from 2Q24[65] Capital Adequacy - Credicorp's CET 1 Ratio stood at 12.56% for BCP Stand-alone and 16.73% for Mibanco, indicating strong capital adequacy[7] - The NPL Coverage ratio at Credicorp increased by 1,449 bps YoY to 109.5%, indicating improved loan loss coverage[184] Market Position and Share - BCP's market share of total deposits in Peru was 32.1%, with a year-over-year growth in low-cost deposits of 6.5%[123][124] - Time deposits at BCP grew by 10.0% YoY, contributing to an increase in market share to 19.4%[124]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 20.7% for Q2 2025, reflecting strong operating performance and disciplined risk management [13][52] - Net interest income increased by 4.2%, supported by a contraction in interest expenses and an improved funding mix [25][50] - The efficiency ratio stood at 44.2%, indicating effective cost control and scalability of digital investments [15][51] Business Line Data and Key Metrics Changes - Universal banking and insurance and pensions posted strong results, while microfinance continued to recover [13] - Fee income increased by 8.2%, driven by transactional activity at JAPI and BCP [26] - The innovation portfolio contributed 6.2% of risk-adjusted revenues, on track towards a 10% target for 2026 [13] Market Data and Key Metrics Changes - Peru's GDP is expected to grow by 3.2% in 2025, with domestic demand growing around 4.5% [8][29] - Inflation in Peru has remained below 2% for seven consecutive months, supporting recovery in private consumption [31][29] - The terms of trade have reached their highest level in 75 years, driven by elevated prices of gold, silver, and copper [29] Company Strategy and Development Direction - The company is focused on building a more agile, balanced, and forward-looking platform, emphasizing digital infrastructure and client engagement [10][16] - Investments in disruptive innovation are a key pillar of the long-term strategy, with a goal to enhance financial inclusion and sustainability [19][21] - The company aims to transition towards a more diversified business model where fee generation and client engagement are as critical as lending [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable resolution regarding the tax case with Sunnab, despite the payment of approximately 1.6 billion soles [12][53] - The macroeconomic environment is improving, with expectations of sustained engagement in the second half of the year [10][28] - The company anticipates loan growth to accelerate, particularly in retail banking, supporting a resilient net interest margin (NIM) [57] Other Important Information - The company has revised its full-year ROE guidance to around 19%, reflecting solid core performance and disciplined risk management [59] - The ongoing economic recovery is positively impacting the microfinance sector, with Mibanco's profitability rising by 16.3% [41] - Yape continues to scale, serving nearly 50 million monthly active users, and is expected to become a significant contributor to the company's revenue [17][39] Q&A Session Summary Question: What is driving the improvement in cost of risk? - Management explained that measures taken last year ensured portfolios are under risk appetite, leading to a low cost of risk. They anticipate higher yielding portfolios in the second half of the year [63][66] Question: What is the long-term vision for the physical branch network? - Management indicated that the role of branches has shifted from transactional to educational and commercial, with a significant reduction already made in the branch network [70][72] Question: What are the expectations for loan growth this year? - Management expects loan growth to be around 6.5%, primarily driven by retail segments, including mortgages and consumer credit [80][85] Question: How much can Yape contribute in the future? - Management anticipates Yape could become the second largest line of business for Credicorp, primarily due to its lending business in retail and SME segments [94][95]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 20.7% for Q2 2025, reflecting strong operating performance and disciplined risk management [13][22] - Net interest income increased by 4.2%, supported by a contraction in interest expenses and a low-cost deposit structure [24][51] - The risk-adjusted net interest margin (NIM) reached a record 5.4%, aided by improved asset quality [14][52] Business Line Data and Key Metrics Changes - Universal banking and insurance and pensions posted very strong results, while microfinance continued to recover [13] - Fee income increased by 8.2%, driven by transactional activity at JAPI and BCP [25] - The innovation portfolio contributed 6.2% of risk-adjusted revenues, on track towards a 10% target for 2026 [13] Market Data and Key Metrics Changes - Peru's GDP is expected to grow by 3.2% in 2025, with domestic demand growing around 4.5% [7][27] - Inflation in Peru has remained below 2% for seven consecutive months, indicating a favorable economic environment [30] - The terms of trade have reached their highest level in 75 years, driven by elevated prices of gold, silver, and copper [27] Company Strategy and Development Direction - The company is focused on building a more agile, balanced, and forward-looking platform, emphasizing digital infrastructure and client engagement [9][16] - The strategy includes advancing digital onboarding, behavioral scoring, and embedding AI across operations to enhance efficiency and decision-making [18][20] - The company aims to transform into a more diversified business model where fee generation and client engagement are as critical as lending [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable resolution regarding the tax case with Sunnab, despite the payment of approximately 1.6 billion soles [11][54] - The company anticipates loan growth to accelerate in the second half of the year, particularly in retail banking and microfinance [56][84] - The long-term sustainable ROE guidance has been revised upwards to around 19.5%, driven by stronger expectations of loan growth dynamics [60] Other Important Information - The company is preparing for its Investor Day on October 9, where it will outline its financial services model of the future [21] - The company reported a significant gain in BCP's investment portfolio, contributing positively to the ROE [22] Q&A Session Summary Question: What is driving the improvement in cost of risk? - Management explained that measures taken last year ensured portfolios are under risk appetite, leading to a low cost of risk. They anticipate higher yielding, higher risk portfolios in the second half of the year [63][66] Question: What is the long-term vision for the physical branch network? - The company has reduced its branch network significantly and plans to continue evolving branches into more educational and commercial hubs rather than transactional centers [70][72] Question: What are the expectations for loan growth this year? - The company expects loan growth to be around 6.5%, particularly driven by retail segments, including mortgages and consumer credit [84] Question: How much can Yape contribute in the future? - Yape is expected to become the second largest line of business for the company, primarily due to its lending business in retail and SME segments [91] Question: What is the expected cost of risk for the second half of the year? - The expectation for the whole year is a cost of risk in the range of 1.8% to 2.2%, with the second half likely closer to 2% [103]

Financial Performance Highlights - Credicorp achieved a Return on Equity (ROE) of 20.9% in 1H25[91], and the long-term sustainable ROE target was raised from approximately 18% to approximately 19.5%[102] - Net Interest Income (NII) increased by 5.3% year-over-year (YoY) in 2Q25[83] - Fee income increased by 8.2% YoY[19], and gains on FX transactions increased by 7.9% YoY[19], while insurance underwriting results increased by 11.2% YoY[19] Key Ratios and Metrics - The Common Equity Tier 1 (CET1) ratio stood at 12.56%[14, 19], a 51 basis points (bps) increase YoY[19] - The Non-Performing Loan (NPL) ratio decreased by 102 bps YoY to 5.0%[19] - The Cost of Risk (CoR) decreased by 141 bps YoY to 1.6%[19] - The Net Interest Margin (NIM) increased by 9 bps YoY to 6.4%[19] - Low-cost deposits accounted for 57.2% of the funding base, a 274 bps increase YoY[19] Business Segment Performance - Universal Banking demonstrated strong profitability, with an ROE of 30.9% in 2Q25[37] - Yape's lending operations saw significant growth, with the number of users with loans increasing from 0.8 million in 2Q24 to 3.0 million in 2Q25[45, 47], and lending revenue share increasing from 4% to 18% over the same period[45, 47] - Mibanco Peru's ROE increased to 16.3% in 2Q25[50], driven by improved risk management and a stronger NIM[49] - Grupo Pacifico's insurance service income was S/ 847.914 million in 2Q25[59], with insurance service expenses accounting for 68.3% of the income[59] Economic Outlook and Guidance - The company expects a GDP growth of around 3%[14, 96] - The company updated its 2025 guidance, expecting a total loan portfolio growth of around 6.5%[96]

Core Viewpoint - The Peruvian Tax Authority (SUNAT) has cancelled a tax assessment and fine totaling approximately S/ 1.6 billion soles against Credicorp, allowing the company to challenge the resolutions through legal channels while maintaining its commitment to regulatory compliance [2][3]. Group 1: Tax Dispute Update - The total amount of the Tax Assessment Resolutions and Fine Resolutions issued by SUNAT on June 27, 2025, has been cancelled, resolving any potential misperception of outstanding obligations to the Peruvian State [2]. - Credicorp is exercising all legal rights available to challenge the Resolutions and remains confident in a favorable outcome, assessing the contingency as remote [3]. Group 2: Company Overview - Credicorp is the leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama, and has a diversified business portfolio organized into four lines: Universal Banking, Microfinance, Insurance & Pension Funds, and Investment Management & Advisory [4].

Group 1 - Credicorp Ltd. will release its 2Q25 Earnings Report on August 14, 2025, after market close [1] - A conference call to discuss the earnings results will take place on August 15, 2025, at 10:30 a.m. ET [1] - The call will be hosted by key executives including the CEO, CFO, and heads of various divisions [1] Group 2 - Participants are encouraged to pre-register for the webcast presentation to gain immediate access [2] - Those unable to pre-register can dial in using provided toll-free and international numbers [3] - The webcast will be archived for one year on Credicorp's investor relations website [3] Group 3 - Credicorp is a 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]

Group 1 - Credicorp Ltd. will enter a quiet period for its 2Q25 earnings release starting July 31, 2025, which will last until August 14, 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] - Credicorp operates through various subsidiaries, including Banco de Crédito del Peru, Mibanco, Grupo Pacifico, and Credicorp Capital [2]

Summary of Conference Call Company and Industry - The discussion revolves around a company operating in the wholesale and retail segments, specifically mentioning changes in distribution and promotional strategies. The company is undergoing a turnaround process and addressing operational challenges. Core Points and Arguments - **Future Prospects**: The company believes its future prospects are improving, although current challenges are more core-specific rather than industry-wide [2][3][5] - **Cost Savings**: The company is nearing the top end of its projected cost savings of $20 to $30 million, with plans to reinvest in core processes and systems for future performance [7][9] - **Promotional Strategy Change**: A shift from broad store sales to category-specific promotions has impacted sales but positively affected gross margins [11][12] - **Trade Segment Performance**: The trade segment initially showed a 3.7% increase but experienced underperformance in May and June, which affected overall results [16][18] - **Site Consolidation**: The company is closing 45 sites primarily in the wholesale segment to improve profitability and operational efficiency, despite short-term disruptions to customer relationships [19][20][24] - **Operational Changes**: Significant changes in operational management have been made, particularly in retail, to improve performance, although benefits are yet to be fully realized [50][51] - **Store Impairment Charges**: The company is actively testing for impairment across its network of stores, focusing on profitability indicators to determine which stores may need to close [56][59] Other Important Content - **Balance Sheet Review**: An extensive review of the balance sheet has been conducted, revealing some disappointing findings, but the company is confident in the thoroughness of the review [28][29] - **NPS Implementation**: The company has not previously collected Net Promoter Score (NPS) data but plans to implement a program to start collecting this information by August [36] - **Long-Term Turnaround**: The turnaround process is expected to be significant but not longer than initially anticipated, with a five-year horizon set for strategic financial goals [40][41] - **Store Openings**: The company plans to open 12 new trade stores in the upcoming fiscal year, while no new retail stores are planned at this time [49][50] This summary captures the key points discussed during the conference call, highlighting the company's strategic direction, operational changes, and financial outlook.