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]

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]

Core Viewpoint - BCP has announced the sale of The Gray Casualty & Surety Company to Palomar Holdings, marking a significant transaction in the surety bond market for midsized and emerging contractors [1][2]. Group 1: Transaction Details - The transaction has received approval from the boards of directors of both Gray Surety and Palomar and is expected to close in the first half of 2026, pending regulatory approvals and customary closing conditions [2]. - J.P. Morgan is serving as the exclusive financial advisor for Gray Surety, while Evercore is advising Palomar on the transaction [4]. Group 2: Company Background - Gray Surety specializes in contract bonds for midsized and emerging contractors across the United States and is licensed in all 50 states, operating through 13 regional offices [3][7]. - Since BCP's investment in 2021, Gray Surety has experienced significant growth, maintaining a loss ratio below the industry average and achieving annual double-digit growth [7]. Group 3: Strategic Implications - The partnership with Palomar is expected to provide Gray Surety with enhanced financial strength, scale, and strategic support, allowing for expanded reach and improved relationships with agency partners [4]. - The transaction reflects the successful positioning of Gray Surety for long-term success, as noted by BCP's partner Jeff Koonce [4].

🗞️ Need to catch up on the news? Here's our top 10 from today:🔸 Ethereum developers launch Kohaku roadmap to enhance wallet privacy and security through a modular framework designed for developers and advanced users.🔹 Coinbase and Mastercard are in negotiations to acquire stablecoin startup BVNK for around $2B, with Coinbase reportedly leading, per Fortune.🔸 Roger Ver reaches tentative agreement with US DOJ over mail fraud and tax evasion charges, requiring him to pay $48M to settle the charges, per NYT.🔹 C ...

🇵🇪 BULLISH: Peru’s largest bank, BCP, launched Criptococos, the country’s first crypto platform, approved by the SBS. https://t.co/F7QH9etuG8 ...

Core Insights - BCP has successfully closed the sale of its stake in Brown & Root Industrial Services, a provider of specialty industrial services, although financial terms were not disclosed [1]. Group 1: Company Overview - Brown & Root Industrial Services was established in partnership with KBR, Inc. in 2015 and has expanded to over 22 locations across the U.S., Mexico, and Canada, employing more than 10,000 people [2]. - The company has a nearly 100-year legacy in providing industrial services, including engineering, construction, maintenance, and specialty services, primarily serving sectors such as chemicals, energy, and manufacturing [5]. Group 2: Investment and Growth - BCP's partnership with Brown & Root has been characterized as a successful investment, highlighting the value created through collaboration with strong management teams in essential services [3]. - The leadership team, including CEO Andy Dupuy, has credited BCP for its support in expanding the company's footprint and enhancing service offerings over the past decade [3]. Group 3: Future Outlook - The transaction is viewed as a significant milestone for Brown & Root, with expectations for continued growth and service delivery for its customers and employees [3].

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]

Core Insights - BCP has agreed to sell its stake in Brown & Root Industrial Services, a provider of specialty industrial services, while KBR, Inc. will retain a significant stake in the company [1][2]. Company Overview - Brown & Root Industrial Services has nearly 100 years of experience in the industrial services sector, serving blue-chip customers across various segments including chemicals, energy, manufacturing, and government [2][6]. - The company has over 10,000 employees and operates 22 locations across the U.S., Mexico, and Canada [2]. Partnership and Growth - The partnership between BCP and Brown & Root Industrial Services has been pivotal in the company's growth over the past decade, enhancing its reputation and capabilities [3]. - BCP's investment strategy focuses on supporting world-class management teams and executing shared growth visions, which has positioned Brown & Root as a leading industrial services provider in North America [3]. Transaction Details - The transaction is expected to be completed in late Q3 or early Q4 of 2025, pending customary closing conditions and approvals [3]. Financial Advisory - Houlihan Lokey is acting as the financial advisor, while Kirkland & Ellis LLP serves as the legal advisor to BCP in this transaction [4]. BCP Overview - BCP is a private equity management firm established in 2013, with over $5 billion in assets under management, focusing on creating sustainable value in services and infrastructure businesses [5].

Financial Data and Key Metrics Changes - The company reported a high Return on Equity (ROE) of 20.3%, boosted by extraordinary gains from the acquisition of a joint venture stake, while the operating ROE was 18.4% [10][20][51] - Total assets contracted by 2% due to a revaluation of Bolivia's balance sheet [20][46] - Net interest income increased by 4.3%, with a resilient Net Interest Margin (NIM) of 6.2% despite a year-over-year contraction in asset yields [22][54] Business Line Data and Key Metrics Changes - Loan growth was robust in wholesale banking and short-term loans, with an overall increase of 1.5% in average daily balances [21][12] - Non-performing loans (NPLs) contracted, with the NPL ratio standing at 5.1% [21][48] - Fee income grew by 16%, driven by transactional activity at Yape and BCP [22][50] Market Data and Key Metrics Changes - Peru's GDP grew by 3.9% year-over-year in Q1 2025, supported by private spending and low inflation [25][6] - Inflation remained within the Central Bank's target range at 1.7% year-over-year in April [26] - High-frequency economic indicators such as car sales and imports are growing rapidly, indicating a recovery in private consumption [25][26] Company Strategy and Development Direction - The company is focused on modernizing core systems, expanding digital capabilities, and enhancing client journeys across various business lines [10][14] - Sustainability is deeply integrated into the company's strategy, with initiatives aimed at financial inclusion and environmental risk management [14][103] - The company aims to achieve a structural ROE ambition of 18% by 2026 while expanding access and generating shareholder value [103] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Peru's macroeconomic fundamentals and the potential for growth despite global uncertainties [5][15] - The outlook for Peru's economy remains positive, with expectations of around 3% growth in 2025, assuming global recession risks are contained [15][56] - Management is closely monitoring global developments, including trade tensions and their potential impact on commodity prices [8][16] Other Important Information - The company announced a dividend payout of PEN 40 per share, reflecting strong solvency and support for long-term growth plans [13][24] - The company achieved 5.4% of recent adjusted revenues from new businesses, progressing towards a 10% target by 2026 [11][54] Q&A Session Summary Question: Guidance and ROE Expectations - Analyst inquired about the reasons for not updating guidance despite strong Q1 results and the potential for higher sustainable ROE levels [59] - Management indicated that while they expect to exceed current guidance, global uncertainties, particularly related to tariffs, are a concern [62][63] Question: Cost of Risk and Model Revisions - Analyst asked about the drivers behind the reduction in cost of risk and the potential for further model revisions [71] - Management confirmed that improvements in the macroeconomic environment and adjustments in credit policy have contributed to lower expected losses [74] Question: Loan Growth Dynamics - Analyst questioned the slow loan growth despite strong economic indicators and asset quality improvements [76] - Management explained that loan growth typically lags behind economic recovery and expressed confidence in future acceleration [81][86] Question: Sensitivity to Interest Rates - Analyst requested clarification on the company's sensitivity to interest rate changes [90] - Management provided details on the expected impact of a 100 basis point decline in rates on NIM, emphasizing limited risk [94] Question: Lending Opportunities through Yape - Analyst inquired about lending growth through the Yape platform and the focus on individual versus SME lending [96] - Management highlighted that individual lending is the current focus, with plans to expand into SME lending as capabilities develop [100]