Credicorp (BAP) Q4 2024 earnings summary

Executive summary

• Achieved record net income of S/5,501 million in FY24, up 13.1% YoY, with ROE at 16.5% (17.2% excluding a S/259 million Sartor case charge).

• Strong operational performance in Q4, with improved cost of risk, increased lending, and record transactional volumes.

• Strategic focus on digital transformation, risk management, talent, and sustainability, with significant advances in financial inclusion and innovation.

• Peru's economic recovery amplified positive impacts from strategic initiatives.

• Diversified revenue streams and robust asset quality improvements underpin resilience and growth.

Financial highlights

• FY24 net income reached a record S/5,501 million, with ROE at 16.5% (17.2% excluding Sartor one-off).

• NIM for FY24 stood at 6.34%, with risk-adjusted NIM at a record 5.08%.

• Efficiency ratio improved 30 bps YoY to 45.8% for FY24.

• NPL ratio dropped to 5.3% in 4Q24, with coverage ratio at 104.3%.

• Total deposits increased 9.6% YoY, with low-cost deposits at 69.4% of the total.

Outlook and guidance

• 2025 guidance: Peru GDP growth of ~3%, loan book growth of 3.5% (average daily balances), and ROE target around 17.5%.

• NIM expected between 6.2%-6.5%; cost of risk between 2%-2.4%.

• Efficiency ratio projected at 45%-47% for 2025.

• Fee income growth projected in low double-digits for 2025.

• Economic recovery and lower global rates expected to support further growth.