BAP Latest Report

Financial Performance

Based on Credicorp's latest financial data, its total operating revenue as of December 31, 2024 was $560.444 million, up 9.39% from $512.180 million as of December 31, 2023. This growth indicates a positive growth trend in the company's operating revenue, possibly related to business expansion or increased market demand.

Key Financial Data

1. Insurance Business Revenue Growth: Insurance business revenue was $31.268 million in 2024, up from $28.730 million in 2023, indicating revenue growth in the insurance business segment.

2. Increased Commission Expenses: Commission expenses increased from $98.617 million to $110.355 million, although expenses increased, possibly reflecting the company's investment in expanding its business.

3. Improved EBIT Margin: EBIT margin increased from $68.483 million to $78.245 million, showing an improvement in the company's overall profitability, which may support revenue growth.

4. Improved Market Environment: The overall improvement in the market environment may have driven the company's revenue growth, especially in the financial and insurance sectors, where increased demand may have led to revenue growth.

Peer Comparison

1. Industry-wide Analysis: In the financial services industry, particularly in insurance and banking, the overall market trend shows stable growth, with many companies achieving year-on-year growth in operating revenue. Intensified competition within the industry prompts companies to enhance service quality and expand product lines to attract more customers.

2. Peer Evaluation Analysis: Compared to other companies in the same industry, Credicorp's operating revenue growth rate of 9.39% is at a moderate-to-high level. While there may still be room for further improvement compared to some industry leaders, the overall performance is good, demonstrating the company's competitiveness in the market.

Summary

Credicorp's financial performance in 2024 is strong, with both operating revenue and EBIT margin showing growth, reflecting positive developments in the insurance business and overall market environment. Although commission expenses have increased, this may be a result of the company's investment in business expansion. Overall, Credicorp maintains strong competitiveness in the industry and is expected to continue growing in the future.

Opportunities

1. With policy benefits and market recovery in the insurance business, Credicorp is likely to gain higher investment returns.

2. The company's newly launched digital marketing creation platform and related AI technology products can enhance its market competitiveness and attract more customers.

3. Continued industry growth and increased market demand provide opportunities for Credicorp to expand its business.

Risks

1. The increase in commission expenses may affect the company's profit margin, which needs to be managed carefully.

2. Intensified competition within the industry may put pressure on the company's market share, affecting future revenue growth.

3. Fluctuations in the economic environment may affect customer demand, negatively impacting the company's operating revenue.