Whether the very low cost of risk carries downside risks pending the election and El Niño outcome

Rios separated Mibanco (good but not dramatically changed, while increasing exposure to sub-S/5,000 tickets) from BCP, where a structural segment-by-segment origination improvement combined with three one-off effects — mining profit-sharing, pension-withdrawal liquidity, and wholesale provision liberation versus prior-quarter construction builds — exacerbated the decline. He expects cost of risk to rise toward Alejandro's guided rates, likely at the lower range. “the combination of 3 very point-in-time effects in the quarter that I would say the exacerbate the decrease of the cost of risk.”

Whether low cost of risk frees capital for higher-yielding credit, and what beyond cost of risk supports the upper-side ROE

Ferrari stressed the company manages to risk-adjusted NIM, not cost of risk, expecting risk-adjusted NIM to rise even as cost of risk increases because retail, microfinance and app lending grow faster. Perez-Reyes attributed upper-side ROE potential to strong loan growth and risk-adjusted NIM plus a robust economy, while remaining prudent ahead of elections and El Niño. Priority in capital allocation is growth. “we do not manage the company by only taking a look at cost of risk, but most importantly, by taking a look at risk-adjusted NIM.”

How Yape is performing in Bolivia and whether the platform can expand to markets like Chile

Raffo said Bolivia grew to over 2 million customer lines with a merchant-driven, P2M-heavy model in an already-interoperable market where Yape is the leader against a strong competitor. Monetization is following Peru's path via utility payments and value-added services toward lending. Chile is being entered via Tempo as a neobank leveraging a cash-based economy, with the platform re-engineered to be more exportable. “Yape has been working around creating a platform that is much more exportable.”

BAP

Credicorp (BAP) Q1 FY26 earnings call: guidance and Q&A

Q: Color on the presidential runoff, potential alliances, and how likely and how damaging a strong El Niño could be

Ferrari said the Fujimori-vs-Sanchez runoff is near-certain with no material alliances yet and limited endorsement power, with a public poll showing them tied. Rios distinguished the local El Niño Costero (already a low-moderate effect halting the anchovy season after ~1/4 harvest) from the Central Pacific Niño, with clearer indications by September. Perez-Reyes sized potential GDP impact at ~1% if it materializes, referencing 1.7% in the extraordinary 1998 event. “depending on the summer and the confusion of both the El Nino Costero loan Nino, whether it's going to be moderate or strong we're going to see the impacts around 1% of GDP of Peru, if it were to materialize.”

Earnings call· Mar 2026 (Q1 FY26)· Financials· May 15, 2026

Source: earnings call transcript

Executive summary

Credicorp Ltd. Q1 FY26 — record net income, 21.1% ROE on strong credit and Yape scaling

A record quarter powered by a benign Peruvian credit cycle and accelerating retail/digital monetization, with management explicitly steering by risk-adjusted NIM rather than headline cost of risk. The stance is deliberately prudent: guidance is reaffirmed despite tracking above it, held back only by El Niño and the coming presidential runoff. Yape's shift from scale to monetization is the emerging second engine, while a leadership transition proceeds in parallel.

Highlights

Record-high net income with consolidated ROE of 21.1%, exceeding expectations
Net interest income +10.9% YoY with NIM at 6.6%, aided by low-cost deposits reaching 63.9% of funding
Asset quality improved across the board: NPL ratio fell to 4.3% (below pre-2023-recession levels) and cost of risk at 1.3%
Yape reached 16.4M monthly active users (~82% of economically active population); revenue-generating total payment volume +80% YoY and lending revenue +3.6x YoY
Fee income +15.6% and FX transaction gains +30.6% YoY, with BCP ROE at 30.5% and Mibanco at 21.7%

Concerns

Cost of risk (1.3% consolidated; BCP 0.8%) flagged as unusually low on one-off effects and expected to rise toward guidance as retail/microfinance origination accelerates
Insurance underwriting result -9.1% YoY on lower P&C premiums and inflation-linked claims
El Niño (Costero and Central Pacific) could hit Peru GDP by ~1% if it turns strong; anchovy season halted after 1/4 of usual harvest
Political uncertainty ahead of the Fujimori-vs-Sanchez presidential runoff, with one candidate advocating a more interventionist state
Inflation rose to 4% YoY (highest in 2+ years), keeping monetary conditions tighter than anticipated
Investment Management & Advisory net income -8% YoY on higher opex vs a low prior-year base

Guidance & targets

Category	Target	Timeline	Confidence
Peru GDP growth	around 3.5% medium materiality	FY26	Medium
Total loan book growth (quarter-end balances)	around 8.5% high materiality	FY26	High
Total loan book growth (FX-neutral)	around 10.5% high materiality	FY26	High
Net interest margin (NIM)	between 6.4% and 6.7% high materiality	FY26	High
Cost of risk	approach the lower end of guidance range high materiality	FY26	Medium
Risk-adjusted NIM	remain within guidance, likely upper side high materiality	FY26	Medium
Fee income growth	low double digits medium materiality	FY26	High
Insurance underwriting result	drop by high single digits medium materiality	FY26	Medium
Insurance underwriting result excluding D&S	high single-digit growth medium materiality	FY26	Medium
Return on equity (ROE)	around 19.5%, likely upper side high materiality	FY26	High
Efficiency ratio	maintain 2026 guidance range medium materiality	FY26	Medium
Mibanco cost of risk	gradual normalization in H2 2026 medium materiality	H2 FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
BCP (Banco de Crédito del Perú) Loan growth driven by wholesale (long-term disbursements on private-investment recovery) and retail (individuals, mortgages on lower rates, SME on higher risk appetite). NIM rose on lower funding cost with resilient asset yield; NPL decline aided by SME judicial-recovery cancellations and pension-withdrawal repayments. Provisions benefited from improved early-vintage consumer/card performance and a wholesale reversal after a corporate client regularized refinanced exposure. NIM: 6.0% (+21 bps)Risk-adjusted NIM: 5.5% (record high)Cost of risk: 0.8%NPL volumes: -11.1% YoYProvisions: -35.1%Other core income: +18.7% YoYOperating expenses: +15.1% YoYEfficiency ratio: 38.6%	—	+7.3% loans (end-of-period); +9.1% FX-neutral	—	ROE 30.5%
Mibanco (Peru microfinance) Record loan disbursements with a downward NPL trajectory begun last year; NIM boosted by active pricing management and lower funding cost. Opex rose on digital-transformation and technological-architecture investments, yet efficiency still improved. Some cost-of-risk normalization anticipated in H2 2026 as newer, smaller customer segments are incorporated. NIM: 14.9%Risk-adjusted NIM: 11.3% (slightly below prior quarter's 4-year high)NPL ratio: 4.9% (all-time low)Cost of risk: -29 bpsLower-risk vintages: 88% of total loansEfficiency ratio: 49.2%	—	+12.4% loans (quarter-end balances)	—	ROE 21.7%
Mibanco Colombia Continued double-digit loan growth both QoQ and YoY, bolstered by controlled risk management and improving productivity, representing a sizable profitability improvement over the prior-year period. Profitability improvement from single-digit ROE a year earlier	—	double-digit loan growth	double-digit loan growth	ROE 18.3%
Grupo Pacifico (Insurance) Solid underlying results led by Life; net loss on securities dropped versus a prior-year base hit by asset downgrades. Full consolidation of Pacifico Salud (medical assistance, corporate health insurance, medical services) lifted consolidated net income 19% YoY. Management views ~20% ROE as sustainable, below the >25% of recent years. Life business led organic growth via bancassurance and optional-policy issuanceP&C net income fell on lower corporate premiums and higher personal/medical-assistance claims	—	organic net income +11%; +19% including Pacifico Salud consolidation	—	ROE 18.9%
Investment Management & Advisory (Credicorp Capital) Revenues benefited from stronger wealth and asset management and favorable capital-markets conditions, but were offset by higher operating expenses against a particularly low prior-year comparative base, leaving net income down 8% YoY. Wealth management AUM: +28%Asset management AUM: +34%Capital markets line evolved favorably with market conditions	—	net income -8%	—	ROE 15.7%
Yape / Neobank (Innovation portfolio) Yape is shifting from scale to deeper engagement and monetization; payments serve as the core data-generation and cross-sell engine while lending is the fastest-growing vertical. As of April 1, Yape Peru, Yape Bolivia, EO and Tempo (Chile) operate under a single neobank unit led by Ramon Morales. Share of group fee income: 17% (up from 12%)Share of group risk-adjusted revenues: 8% (up from 5%)Payments as share of Yape revenues: 47%Lending penetration: ~30% of MAUs	—	—	—	—

BAP operating KPIs by quarter

BAP operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Net interest margin	—	6.2% In this context, NIM remained resilient at 6.2% despite a year-over-year contraction in asset yields. Source: earnings call transcript	6.4% In this context, NIM remained resilient at 6.4%. Source: earnings call transcript	—	6.6% In this context, NIM stood at 6.6%. Source: earnings call transcript	6.6% In this context, NIM stood at 6.6%. Source: earnings call transcript	6.6% Against this backdrop, NIM stood at 6.6%. Source: earnings call transcript	0 pt
Net interest margin BCP	6% NIM decreased 20 basis points to stand at 6%. Source: earnings call transcript	5.8% NIM remained resilient at 5.8% despite decreasing interest rates, cautioned by a lower cost funding structure. Source: earnings call transcript	6% NIM stood at 6% due to an improvement in the asset mix and a drop in the funding cost. Source: earnings call transcript	6.1% NIM stood at 6.1%, increasing 10 basis points on the tail of a shift in the asset mix. Source: earnings call transcript	6.1% NIM remained relatively stable at 6.1%, reflecting resilience in the context of lower interest rates. Source: earnings call transcript	6% NIM rose 21 basis points to stand at 6%, mainly due to a decrease in the funding cost while the yield on interest-earning assets remained resilient in an environment of lower interest rates. Source: earnings call transcript	6.1% NIM stood at 6.1% as the loan portfolio shifted to a higher yield mix, while funding costs remained stable. Source: earnings call transcript	+0.1 pt
Active accounts Yape	<40M Yape reported close to 40 million active users, around 69% of the economically active populatio. Source: earnings call transcript	—	<15M Yape continues to lead Peru's digital financial services landscape with nearly 15 million monthly active users at the end of the second quarter. Source: earnings call transcript	15.5M Yape continues to generate value across the Credicorp ecosystem with 15.5 million monthly active users, which is the equivalent of 82% of the economically active population. Source: earnings call transcript	<16M Yape, our most mature disruptive initiative, closed the year with nearly 16 million monthly active users who engage with the platform an average of 66 times per month. Source: earnings call transcript	—	—	—
Net interest margin Mibanco	14.2% NIM rose 30 basis points to 14.2%, boosted by a drop in the cost of funding after the funding rate decline. Source: earnings call transcript	13.9% NIM contracted due to a less favorable asset mix and stood at a strong 13.9%. Source: earnings call transcript	14.4% NIM rose to a peak of 14.4%, its highest level since before the pandemic, boosted by a shift in the mix towards small ticket, higher-yield loans. Source: earnings call transcript	—	15.2% NIM peaked at 15.2%, boosted by a shift in the mix towards small ticket, higher-yield loans. Source: earnings call transcript	14.9% Our active pricing management, coupled with the decrease in the cost of funding, boosted NIM which stood at a strong 14.9%. Source: earnings call transcript	15.2% As a result, NIM rose 23 basis points to stand at 15.2%. Source: earnings call transcript	+0.3 pt
Efficiency ratio	—	45.7% Our efficiency ratio is at 45.7% within our guidance range as strategic investments in innovation and digital capabilities continue to drive diversified income streams and scalable growth through deeper market penetration. Source: earnings call transcript	44.2% Our efficiency ratio came in at 44.2%, within our expected range, highlighting the scalability of our digital investments and our disciplined approach to cost control. Source: earnings call transcript	46.4% Lastly, from an operational standpoint, our efficiency ratio came in at 46.4%, well within our expected range, reflecting the leverage in our digital capabilities and our disciplined cost management. Source: earnings call transcript	49% From an operational standpoint, our efficiency ratio came in at 49% in the fourth quarter, well within our expected range. Source: earnings call transcript	45.8% Our efficiency ratio is at 45.8% with our guidance -- within our guidance range. Source: earnings call transcript	45.4% Our efficiency ratio stood at 45.4%, while investments in innovation and digital capabilities continue to broaden our revenue base. Source: earnings call transcript	-0.4 pt
Efficiency ratio BCP	—	37.7% The efficiency ratio stood at 37.7% this quarter. Source: earnings call transcript	—	38.7% The efficiency ratio stood at 38.7% at the end of the third quarter. Source: earnings call transcript	—	38.6% In this context, operating expenses and personnel expenses, in particular led the efficiency ratio to stand at 38.6%. Source: earnings call transcript	—	—
Efficiency ratio Mibanco	—	52.9% Operating expenses remained under control and efficiency stood at 52.9%. Source: earnings call transcript	—	51.4% Operating expenses remained under control and efficiency stood at 51.4%. Source: earnings call transcript	—	49.2% Efficiency improved despite these investments and stood at 49.2% at quarter end. Source: earnings call transcript	—	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline	Details
Neobank unit (Yape Peru, Yape Bolivia, EO, Tempo)	expansion	effective April 1, 2026
UPI-style interoperable payments participation	roadmap	pilot ongoing

Deals & partnerships

Pacifico Salud consolidation (M&A)

Pacifico Salud — comprising medical assistance, corporate health insurance and medical services — is now consolidated into Grupo Pacifico results, advancing on solid commercial dynamics and disciplined cost management.

Peru Central Bank (UPI-style rails) payments infrastructure pilot

Credicorp is participating in the Central Bank's UPI (India-origin) interoperability pilot; it will connect to the interoperable system while retaining its own closed loop, viewing it as market-expanding rather than purely competitive.

Risks & headwinds

El Niño (El Niño Costero and Central Pacific Niño) clearer indications by September 2026; potential impact in latter part of year

~1% of Peru GDP impact if it turns strong (1.7% in the extraordinary 1998 event); anchovy fishing season halted after only ~1/4 of usual harvest

Mitigation:Moderate impact already incorporated in expectations; closely monitoring agricultural sector and northern heavy rains; no credit-policy change yet, measures to be taken around September

Presidential election / political uncertainty runoff in June 2026

not quantified

Mitigation:Senate composition trending supportive of macro fundamentals; constitutional hurdles, Senate veto authority and Central Bank independence act as checks on abrupt policy shifts

Rising cost of risk as retail/microfinance origination accelerates H2 FY26

cost of risk expected to rise from 1.3% consolidated (BCP 0.8%) toward the lower end of guidance; Mibanco normalization in H2 2026

Mitigation:Managed to risk-adjusted NIM (expected to rise); disciplined segment-by-segment origination; staying within risk appetite

Inflation and tighter monetary conditions 2026; Peru expected to converge to 2% next year

Peru inflation 4% YoY in April (highest in 2+ years); Colombia inflation 5.6% with 200 bps of rate hikes since December after a 23% minimum-wage increase

Mitigation:Central Bank expects inflation to return to target range as shocks dissipate

Higher oil prices / Middle East geopolitical tensions ongoing 2026

not quantified; copper trading ~$6.5/lb cited as offsetting terms-of-trade support

Mitigation:Peru is a lesser net importer of oil, less vulnerable than regional peers; historic-high terms of trade support the cycle

Insurance P&C premium and claims pressure FY26

P&C net income fell on lower corporate-segment premiums and higher personal/medical-assistance claims; underwriting result -9.1% YoY (excl. inflation impacts +4%)

Mitigation:Inflation-linked claims compensated by inflation-linked financial income (no bottom-line impact); Life business strength and Pacifico Salud consolidation offset

Q&A highlights

Color on the presidential runoff, potential alliances, and how likely and how damaging a strong El Niño could be

Ferrari said the Fujimori-vs-Sanchez runoff is near-certain with no material alliances yet and limited endorsement power, with a public poll showing them tied. Rios distinguished the local El Niño Costero (already a low-moderate effect halting the anchovy season after ~1/4 harvest) from the Central Pacific Niño, with clearer indications by September. Perez-Reyes sized potential GDP impact at ~1% if it materializes, referencing 1.7% in the extraordinary 1998 event.

“depending on the summer and the confusion of both the El Nino Costero loan Nino, whether it's going to be moderate or strong we're going to see the impacts around 1% of GDP of Peru, if it were to materialize.”

asked by Ernesto Gabilondo (Bank of America) · answered by Alejandro Perez-Reyes

3 min read 7 chapters

Detailed narrative

Macro and political backdrop

Management maintained ~3.5% Peru GDP growth for 2026 while noting recent indicators track closer to 3.2%, with domestic demand the more relevant loan-growth driver growing above 4% (management cited >5% for six consecutive quarters). Q1 high-frequency indicators were strong: light vehicle sales rose ~40%, capital goods imports ~20%, and cement consumption 14%.

Inflation rose to 4% YoY in April, its highest in over two years, driven by transport, energy and food, keeping monetary conditions tighter. The presidential runoff appears likely to feature Fujimori and Sanchez; management argues the Senate composition and constitutional checks preserve institutional continuity.

Strategy — decoupling via four growth anchors

Credicorp reiterated its decoupling strategy across four anchors: deepening leadership in the underpenetrated market, scaling the integrated digital ecosystem, unlocking cross-ecosystem synergies in data/analytics/risk, and delivering resilient returns across cycles. A new neobank unit, effective April 1, brings Yape Peru, Yape Bolivia, EO and Tempo (Chile) under Ramon Morales to leverage shared tech and pursue growth in payments and lending.

Management stressed capital-allocation priority is growth over extraordinary returns given healthier unit economics.

Credit quality and cost of risk dynamics

Consolidated NPL ratio fell to 4.3% (below pre-2023-recession levels) with cost of risk at 1.3% and NPL coverage rising to 13.8% (as stated). CRO Cesar Rios distinguished structural, segment-by-segment improvement from three point-in-time effects at BCP that exacerbated the quarterly decline: an unusually high mining-sector profit-sharing boost to middle-segment repayment capacity, pension-fund withdrawal liquidity aiding retail repayment, and wholesale provision reversals versus prior-quarter construction-related builds.

Management manages to risk-adjusted NIM rather than cost of risk, and expects the latter to rise toward the lower end of guidance as higher-yield retail origination accelerates.

Yape — from scale to monetization

Yape reached 16.4M monthly active users (~82% of the economically active population) with users transacting 67 times per month and an NPS of 77%. Revenue per active user rose 65% YoY to S/10.3 while expense per user rose only 26% to S/5.9, evidencing operating leverage in an asset-light model.

Revenue-generating total payment volume grew 80% YoY and lending revenue grew 3.6x, with 5.7M loans disbursed in Q1 at ~30% MAU penetration. Yape now represents 17% of group fee income and 8% of group risk-adjusted revenues, up from 12% and 5% a year ago.

Mibanco and microfinance

Mibanco delivered 21.7% ROE with loans up 12.4% YoY on record disbursements, and NPL ratio at an all-time low of 4.9%. NIM strengthened to 14.9% on active pricing and lower funding cost, while cost of risk fell 29 bps as lower-risk vintages reached 88% of the book; risk-adjusted NIM stood at 11.3%.

Efficiency was 49.2% despite digital-transformation investment. Mibanco Colombia sustained double-digit loan growth and improved to 18.3% ROE from single-digit levels a year earlier.

Insurance — Grupo Pacifico

Grupo Pacifico posted 18.9% ROE with organic net income up 11% YoY, led by the Life business via bancassurance growth and higher optional-policy issuance, partly offset by P&C where corporate-segment premiums fell and personal/medical-assistance claims rose. Consolidated net loss on securities dropped versus a prior-year base hit by asset downgrades.

Including full consolidation of Pacifico Salud (medical assistance, corporate health insurance and medical services), net income rose 19% YoY. Management views a sustainable Pacifico ROE around 20%, below the >25% of recent years.

Capital, dividend and leadership transition

Strong solvency enabled a record ordinary dividend of S/50 per share as subsidiaries move toward target capital levels. CFO Alejandro Perez-Reyes was appointed to lead the microfinance business and Mibanco, with Ignacio Velagunde to assume the CFO role later in the year; Perez-Reyes remains for one more earnings call.

The board was refreshed with three new directors bringing technology/AI, financial-regulatory and strategic-execution expertise, alongside reelection of six members, while retaining an independent audit committee.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.