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    BAP
    Earnings call· Jun 2026(Q2 FY26)

    CREDICORP Q2 FY26 earnings call BAP

    Aug 14, 2026 Source

    Executive summary

    Credicorp Ltd. Q2 FY26 — Medium-Term ROE Target Raised to 22% Amid Strong Performance

    Credicorp delivered a strong Q2 FY26, reporting a 20.3% ROE, driven by accelerated loan growth and diversified revenue streams. The company raised its medium-term ROE expectation to 22%, reflecting a more favorable operating environment in Peru and structural transformations across its ecosystem. While El Nino poses a temporary risk, management views it as manageable, having incorporated provisions and adjusted risk appetite in affected segments.

    Highlights

    5

    • Reported a strong Q2 FY26 ROE of 20.3%, reflecting a diversified business model.

    • Raised medium-term ROE expectation to approximately 22%, up from 19.5%.

    • Loan growth accelerated to 13.1% year-over-year (quarter-end balances).

    • Yape's risk-adjusted revenue contribution increased to 8.9% of Credicorp's total.

    • Net interest income increased 13.3% year-over-year, driven by lower interest expenses and higher yield loan mix.

    Concerns

    3

    • Registered $106 million in additional provisions related to El Nino risk in Q2 FY26.

    • El Nino is expected to cause short-term volatility and potentially moderate loan growth and fee income in 2027.

    • Peru's primary GDP estimated to have fallen by nearly 5% year-over-year in Q2 FY26 due to El Nino-related disruptions.

    Guidance & targets

    8
    CategoryTargetConfidence
    Medium-term Return on Equity (ROE)
    approximately 22%
    high materiality
    High
    Full-year 2026 Loan Growth
    around 12%
    high materiality
    High
    Full-year 2026 Net Interest Margin (NIM) and Risk-Adjusted NIM
    higher end of our guidance rate
    medium materiality
    Medium
    Full-year 2026 Cost of Risk
    remain within guidance
    high materiality
    Medium
    Full-year 2026 Fee Income Growth
    high-teens growth
    medium materiality
    High
    Full-year 2026 Efficiency Ratio
    remain within guidance
    medium materiality
    Medium
    Full-year 2026 Return on Equity (ROE)
    around 19.5% with a current bias to the upside
    high materiality
    Medium
    Peru 2026 GDP Growth
    around 3.5%
    medium materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    BCP
    Strong profitability with accelerating loan growth, improved asset quality, and stable funding costs. Incorporates El Nino related provisions.
    Total loans (quarter-end): 4.7% QoQ growthTotal loans (FX-neutral): 5.5% QoQ growthRetail loans: led expansionWholesale loans: roseNIM: 6.1%NPL ratio: 3.9%Cost of risk: 1.4%Risk-adjusted NIM: 5.2%Total loans (year-over-year): 10.9% growthTotal loans (FX-neutral year-over-year): 12.2% growthNIM (year-over-year): rose 12 bpsNPL ratio (year-over-year): dropped 93 bpsCost of risk (year-over-year): rose 25 bpsOther core income (year-over-year): 15.4% growthOperating expenses (year-to-date): 14.9% growthEfficiency ratio (first half): 38.6%
    		———29.2% ROE
    Mibanco
    Healthy growth with disciplined risk management and revenue diversification. Strong execution led to record low NPL ratio. Mibanco Colombia delivered strong results with double-digit loan growth.
    Total loans (quarter-end): 4.4% QoQ growthNPL ratio: 4.8%Average yield on interest-earning assets: upward trendNIM: 15.2% (up 23 bps QoQ)Cost of risk: 5.1% (up 30 bps QoQ)Risk-adjusted NIM: 11.2% (down 5 bps QoQ)Total loans (year-over-year): 15% growthCost of risk (year-over-year): fell 24 bpsEfficiency ratio (first half): 4% (down 4 percentage points)Mibanco Colombia ROE: 18.5%
    		———22.9% ROE
    Grupo Pacifico
    Solid results driven by strong commercial execution. Life business posted healthy organic growth. P&C net income fell due to higher claims. Corporate Health posted higher net income, and medical services remained relatively stable.
    		—relatively flat net income YoY—19.1% ROE
    Investment Management and Advisory
    Profitability strengthened significantly due to sustained growth in recurring businesses and an uptick in trading contribution from market volatility. Higher revenues were partially offset by increased operating expenses.
    Asset Management AUM: up 44% YoYWealth Management AUM: up 30% YoYNet income: increased 47% YoY
    		increased YoY——23.5% ROE

    Operational metrics

    33
    Yape Users
    15 million
    Q2 FY26

    Yape is Peru's leading digital ecosystem.

    Yape Net Promoter Score (NPS)
    78
    Q2 FY26

    Customer engagement remains exceptionally strong for Yape. ASR error, 'NPS of $78 million' corrected to 'NPS of 78%'

    Yape Revenue per MAU
    11.1
    Q2 FY26

    Outpacing growth in expenses per MAU.

    Yape Expenses per MAU
    10.1
    Q2 FY26

    Yape's expenses per MAU.

    Yape Risk-Adjusted Revenue Contribution
    8.9
    Q2 FY26

    Reinforcing Yape's growing relevance within the group.

    Yape Loans
    1.8 billionup 4x YoY
    Q2 FY26

    ASR error, 'PLN 1.8 billion' corrected to 'PEN 1.8 billion'. Loans reached this amount, expanding financial services footprint.

    Yape Clients Receiving Loan Disbursements
    5.6 million
    Q2 FY26

    Number of clients receiving loan disbursements.

    Yape Loan Penetration
    1/3
    Q2 FY26

    Loan penetration at around 1/3 of monthly active users.

    Yape Lending Contribution to Revenues
    28
    Q2 FY26

    Lending further increases its contribution to Yape revenues.

    Yape Payment Contribution to Revenues
    45
    Q2 FY26

    Payment contribution to Yape revenues.

    Yape Revenue-Generating Payment Transactions Growth
    42YoY growth
    Q2 FY26

    Continuing to strengthen Yape's ability to generate data and enhance customer engagement.

    Innovation Portfolio Risk-Adjusted Revenue Contribution
    9.9
    Q2 FY26

    Innovation portfolio contributed to Credicorp's risk-adjusted revenue.

    Innovation Portfolio Expenses Growth
    33YoY growth
    Q2 FY26

    Led by Yape, these expenses represented 84% of disruptive expenses for the group.

    First Half ROE
    21.2
    H1 FY26

    Supported by the strength of the integrated business ecosystem and improving economic conditions.

    Core Income Growth
    15.1YoY growth
    Q2 FY26

    On the back of diverse revenue streams.

    Operating Expenses Growth
    13.5YoY growth
    Q2 FY26

    Fueled primarily by core business and BCP and investments in innovation portfolio.

    Risk-Adjusted NIM
    5.5
    Q2 FY26

    Reflecting disciplined pricing, portfolio mix optimization, and solid underlying credit performance.

    NPL Coverage Ratio
    117.3
    Q2 FY26

    Coverage levels remain strong, reinforcing balance sheet's ability to absorb future volatility.

    Interest Earning Assets Growth
    1.8QoQ growth
    Q2 FY26

    Driven primarily by loan growth at BCP and higher investment balances.

    Interest Earning Assets Growth
    12.2YoY growth
    Q2 FY26

    Led by loan growth at BCP and Mibanco.

    Funding Increase
    3.5QoQ increase
    Q2 FY26

    Driven by growth in demand and time deposits and an uptick in Central Bank funding instruments.

    Yield on Interest-Earning Assets
    8.4stable
    Q2 FY26

    Impact of shift in asset mix offset decreasing interest rates.

    Funding Cost
    2.2down 29 bps YoY
    Q2 FY26

    Lower interest rates and increase in low-cost deposit share drove the decline.

    Peru GDP Growth
    3estimated YoY growth
    Q2 FY26

    Peru economy remained resilient in Q2 FY26.

    Peru Primary GDP Decline
    5estimated YoY fall
    Q2 FY26

    Marking its steepest decline since 2014 (excluding pandemic), due to El Nino related disruptions.

    Peru Domestic Demand Expansion
    5estimated YoY expansion
    Q2 FY26

    Reporting the seventh consecutive quarter of strong growth.

    Peru Private Investment Growth
    13YoY growth
    Q2 FY26

    Private investment expectations have rebounded sharply.

    Peru Annual Inflation
    4YoY
    April-July FY26

    Its highest level since late 2023, driven primarily by higher local transportation costs.

    Peru Core Inflation (ex-transportation)
    below 2
    Q2 FY26

    Core inflation excluding transportation.

    Colombia Annual Inflation
    6YoY
    July FY26

    Down from 6.1% in June, marking the first moderation after 4 consecutive monthly increases.

    Chile Annual Inflation
    3.5YoY
    July FY26

    After reaching its highest level in 9 months in June.

    El Nino Direct Loan Exposure
    9
    Q2 FY26

    Estimated direct exposure to potentially affected clients.

    Loan Penetration in Peru
    34down from 42% in 2019
    Q1 FY26

    Indicates significant opportunity for further penetration.

    Industry KPIs

    12
    MetricValueDetails
    Loans13.1%
    Deposits3.5%
    Rotce ROE20.3%
    Capital returns—
    Fee income lines15.9%
    Allowance reserves$106 millionUSD
    Net interest income13.3%
    Net interest margin6.6%
    Net charge offs npls4.1%
    Total operating expenses13.5%
    Provision for credit losses1.9%
    Efficiency ratio operating leverage45.4%

    Risks & headwinds

    2
    El Nino weather phenomenonNear-term (strongest impact likely Q1 2027); remainder of 2026.

    $106 million in additional provisions in Q2 FY26; estimated 2027 GDP growth around 3% under moderate-strong El Nino, but extraordinary event could lead to more pronounced slowdown.

    Mitigation: Incorporating available information into provisions; robust governance framework and mitigation playbook; enhanced data and digital capabilities to identify vulnerable clients and deploy targeted deductions; lower direct exposure and stronger risk management than in previous events.

    Macroeconomic uncertainty in the regionMedium term.

    Colombia inflation 6% YoY (July); Chile inflation 3.5% YoY (July); oil prices volatility.

    Mitigation: Improving operating environment in Peru, Chile, and Colombia (post-election sentiment, stronger currency, lower sovereign yields).

    What to watch in Q3 FY26

    5

    El Nino provision assessment

    End of Q3 FY26 / beginning of Q4 FY26 (September/October)
    Current$106 million in Q2 FY26
    TargetNew assessment and potential adjustment

    Why it matters

    To calibrate expected losses and understand the full financial impact of El Nino on the cost of risk.

    we are going to have probably a second important point of control at the end of the second quarter, the beginning of the -- sorry, at the end of the third quarter, beginning of the fourth because in our conversation with the specialists, the climatologist, at this point, September, October, we are going to have a much better assessment of the severity.

    Q&A highlights

    8

    How will loan growth be distributed between risky/conservative portfolios given El Nino, and should we expect double-digit growth for both wholesale and retail?

    Management expects double-digit loan growth for both wholesale and retail, with temporary adjustments in risk appetite for specific segments/geographies impacted by El Nino. They emphasize the overall positive macro environment and low loan penetration in Peru.

    “without considering the hiccup coming from El Nino, we are expecting double-digit loan growth for both wholesale and retail.”

    asked by Ernesto María Gabilondo Márquez · answered by Alejandro Perez-Reyes

    2 min read6 chapters

    Detailed Narrative

    01

    Peru's Economic Outlook

    Peru is entering a more favorable growth environment, with business confidence at its highest level in years. Private investment is growing approximately 13% year-over-year, and domestic demand has expanded over 5%. Favorable commodity prices, with gold roughly doubled since 2003 and copper up nearly 60%, further strengthen the economy. The political transition and policy continuity, including a new technical team at the Ministry of Economy and Finance, reinforce expectations of a predictable economic environment.

    02

    El Nino Impact and Mitigation Strategy

    El Nino is viewed as a temporary and manageable shock, primarily affecting Peru's fishing, agriculture, and related activities in the North. Credicorp incorporated $106 million in additional provisions related to El Nino risk in Q2 FY26, and expects full-year 2026 cost of risk to remain within guidance. The company has a robust governance framework and mitigation playbook, leveraging enhanced data and digital capabilities to identify vulnerable clients and deploy targeted support, approaching the scenario from a position of strength.

    03

    Strategic Transformation and ROE Update

    Credicorp has structurally transformed its ecosystem over several years, strengthening earnings drivers through improved loan portfolio quality, enhanced risk management, reinforced structural funding advantage, and diversified revenue sources. Consistent investment in technology, data, and talent has created a more scalable and efficient business model. These structural improvements, combined with a more favorable operating environment, led to an updated medium-term ROE expectation of approximately 22%.

    04

    Yape's Expanding Role and Monetization

    Yape continues to strengthen its position as Peru's leading digital ecosystem, with over 15 million users transacting 69 times per month and maintaining an NPS of 78%. Its contribution to Credicorp's risk-adjusted revenues increased to 8.9%. Lending through Yape reached PEN 1.8 billion, a 4x year-over-year increase, with 5.6 million clients receiving disbursements. Lending now contributes 28% to Yape's revenues, while payments contribute 45%, with revenue-generating payment transactions growing 42% year-over-year.

    05

    BCP's Strong Performance and Efficiency

    BCP reported a strong 29.2% ROE in Q2 FY26, driven by accelerating loan growth (10.9% YoY, 12.2% FX-neutral) led by retail and wholesale banking. The NPL ratio fell to 3.9%, and risk-adjusted NIM stood at 5.2%. Operating expenses rose 14.9% year-to-date, primarily due to IT expenses for commercial and transactional capability development and personnel expenses. The efficiency ratio for the first half of the year stood at 38.6%.

    06

    Mibanco and Grupo Pacifico Highlights

    Mibanco delivered healthy growth with disciplined risk management, achieving a 22.9% ROE and a record low NPL ratio of 4.8%. Mibanco Colombia also showed strong results with double-digit loan growth and an 18.5% ROE. Grupo Pacifico posted a 19.1% ROE, with solid profitability led by its Life business, which saw healthy organic growth. The P&C business experienced lower net income due to higher claims, while Corporate Health and medical services remained stable.

    AI-generated summary of the company’s earnings call. Not investment advice.