Credicorp .(US:BAP)2025-10-09 14:02Credicorp 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.