CREDICORP Q1 FY26 earnings call BAP

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.

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.

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 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 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.

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.

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.