Credicorp .(BAP) - 2025 Q3 - Quarterly Report

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]