Credicorp (BAP) Q1 2025 earnings summary

Executive summary

• ROE reached 20.3% in 1Q25 (18.4% excluding extraordinary gains), driven by strong risk management, resilient margins, diversified income, and robust operating results.

• Net income for 1Q25 was S/1,778 million, up 57.8% QoQ and 17.6% YoY, with strong contributions from universal banking, insurance, and digital channels.

• Innovation portfolio contributed 5.4% of risk-adjusted revenues, advancing financial inclusion and value creation.

• Peru's economy rebounded with 3.9%–4% GDP growth in Q1 2025, supporting business momentum and portfolio growth.

• The company is well positioned to benefit from Peru's economic momentum while monitoring global trade and political risks.

Financial highlights

• Net interest income rose 4.3% YoY; NIM stood at 6.22% (risk-adjusted NIM 5.24%), supported by lower interest expenses and growth in low-cost deposits.

• Total loans grew 1.5% YoY; NPL ratio improved to 5.1% (down 112bps YoY); cost of risk dropped to 1.6%.

• Core income increased 7% YoY, with fee income up 16% and insurance underwriting results up 17.9%.

• Efficiency ratio stood at 45.7%, reflecting higher operating expenses and innovation investments.

• Low-cost deposits comprised up to 71.8% of funding base, up significantly YoY.

Outlook and guidance

• 2025 guidance maintained: loan portfolio growth around 3.45%–3.5%, NIM between 6.2%–6.5%, cost of risk at 1.6%–2.4%, efficiency ratio 45%–47%, and ROE around 17.5%.

• Fee income is forecast to grow in the low double digits; innovation portfolio on track to reach 10% of risk-adjusted revenues by 2026.

• Peru's GDP is expected to grow around 3% in 2025, assuming global recession risks remain contained.