Credicorp (BAP) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong results, with ROE at 20.7% and robust performance across core businesses, especially Universal Banking and Insurance & Pensions, while Microfinance continued to recover.

• Net income rose 36.1% year-over-year to S/1,822.0 million, supported by diversified income streams and a favorable macroeconomic environment.

• Innovation portfolio, led by Yape, contributed 6.2% of risk-adjusted revenues, progressing toward a 10% target for 2026.

• Digital transformation and AI integration are driving operational efficiency, customer engagement, and new revenue streams.

• Efficiency ratio improved to 44.2%, and 6.1 million people financially included since 2020.

Financial highlights

• ROE reached 20.7% for the quarter and 20.9% for the semester, with recurring ROE at 20%.

• Net interest income increased 4.2% year-over-year, supported by lower interest expenses and improved funding mix.

• Fee income rose 8.2%, driven by Yape and BCP, while gains on FX transactions increased 7.9%.

• NIM remained resilient at 6.42%, with risk-adjusted NIM at a record 5.44%.

• Efficiency ratio stood at 44.9% for the first half, within guidance.

Outlook and guidance

• Full-year 2025 ROE guidance raised to 19%, with long-term sustainable ROE revised up to 19.5%.

• Loan book expected to grow 6.5% year-over-year (end-of-period), mainly from retail banking and Mibanco.

• NIM guidance set at 6.2%-6.5%, with risk-adjusted NIM revised up to 5%-5.2%.

• Cost of risk guidance updated to 1.8%-2.2% for 2025, reflecting lower provisioning in H1.

• Fee income projected to grow in low double digits; insurance underwriting results to remain solid.