Credicorp Ltd. (BAP): Strategic Capital Allocation and Sustainable Growth Post-Investor Day 2025

Credicorp Ltd. (BAP), Peru's leading financial services group, has positioned itself as a strategic innovator in Latin America's evolving financial landscape. Following its Investor Day 2025 on October 9, 2025, the company has reinforced its commitment to capital allocation efficiency and sustainable growth, leveraging a robust leadership structure, digital transformation, and market expansion initiatives. This analysis evaluates Credicorp's strategic positioning through the lens of capital allocation discipline, financial metrics, and long-term sustainability goals.

Capital Allocation Efficiency: A Leadership-Driven Framework

Credicorp's capital allocation strategy is anchored in its leadership's expertise and cross-functional collaboration. The Executive Chairman, Luis Enrique Romero, and CEO Gianfranco Ferrari, alongside leaders like CFO Alejandro Pérez Reyes and Chief Innovation Officer Francesca Raffo, have established a framework prioritizing innovation, risk management, and financial prudence, according to a Panabee report. Credicorp Capital's research teams further support this strategy by identifying investment opportunities aligned with global diversification and tax efficiency, as shown by Credicorp Capital research.

A key metric underscoring this efficiency is Credicorp's Return on Invested Capital (ROIC), which stood at 2.57% as of recent filings, per FinanceCharts metrics. While this figure appears modest, it reflects the company's focus on long-term value creation over short-term gains. By balancing debt and equity, with a debt-to-equity ratio of 1 according to FinanceCharts data, Credicorp maintains financial flexibility to fund innovation and market expansion without overleveraging.

Growth Sustainability: Digital Transformation and Market Expansion

Credicorp's 2025 Investor Day highlighted ambitious growth targets, including a Sustainable Return on Average Equity (ROAE) of 19.5% by 2028 and a Cost-to-Income (C/I) ratio of 42%, as reported by Panabee. These goals are underpinned by its digital-first strategy, exemplified by the Yape fintech platform. Yape aims to triple revenues, achieve 18 million Monthly Active Users (MAU), and process S/700 billion in annual transactions by 2028, according to the same Panabee coverage. Digital transactions now account for 97% of BCP's total volume, up from 36% in 2017, demonstrating the company's operational scalability (Panabee).

Financial inclusion remains a cornerstone of Credicorp's sustainability agenda. The company targets expanding financial inclusion to 8 million Peruvians by 2028, aligning with its broader mission to democratize access to financial services (Panabee). Additionally, the Bancassurance segment, managed by Pacifico, is projected to contribute 10% of Credicorp's total Net Income by 2027, diversifying revenue streams and reducing reliance on traditional banking (Panabee).

Strategic Priorities and Investor Confidence

Credicorp's capital allocation strategy emphasizes disciplined financial management and self-disruption. For instance, the company aims to generate 10% of risk-adjusted revenues from new business models by 2026, signaling a proactive approach to innovation (Panabee). This aligns with Credicorp Capital's broader philosophy of geographic and asset-class diversification, which seeks to mitigate risks while capitalizing on global macroeconomic trends, as described on the Credicorp Capital Invest page.

Investor confidence is further bolstered by Credicorp's dividend policy. The company declared a cash dividend of S/40.00 per share for fiscal year 2024, with a current yield of 4.10%, according to FinanceCharts data. This demonstrates a commitment to returning value to shareholders while maintaining a balanced capital structure.

Conclusion: A Model for Long-Term Value Creation

Credicorp's post-Investor Day 2025 strategy reflects a harmonious blend of capital discipline, digital innovation, and market expansion. By leveraging its leadership's expertise, investing in transformative technologies, and prioritizing financial inclusion, the company is well-positioned to achieve its ROAE and ROE targets while fostering sustainable growth. As the financial services landscape evolves, Credicorp's integrated approach-balancing profitability with social impact-offers a compelling model for long-term shareholder value.