Credicorp .(US:BAP)2025-08-15 14:30Financial 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]