Credicorp Q2 2025 Earnings Call Transcript Summary

Credicorp Ltd. (BAP) reported Q2 2025 earnings, with Gianfranco Ferrari, CEO, and Alejandro Perez-Reyes, CFO, leading the call. Francesca Raffo, CIO, Cesar Rios, CRO, Diego Cavero, Head of Universal Banking, Cesar Rivera, CFO of Insurance and Pensions, and Rocio Benavides, Mibanco CFO, participated in the Q&A session. The call will contain forward-looking statements subject to risks and uncertainties.

Credicorp Ltd. (BAP), a leading player in the banking sector, reported robust financial results for the second quarter of 2025, surpassing earnings and revenue forecasts. The company's earnings per share (EPS) of $6.42 exceeded expectations by 14.85%, while revenue reached $1.57 billion, up 3.29% from the forecasted $1.52 billion. Following the announcement, Credicorp's stock price rose by 0.71% to $250.36, reflecting positive investor sentiment.

The company's strong performance was driven by a strategic focus on digital transformation and expansion into new financial services. The digital platform, Yape, is expected to become the second largest line of business within the next three to five years. The company also raised its full-year return on equity (ROE) guidance to 19%, indicating strong confidence in its ongoing financial performance.

Key financial highlights include:

- Revenue: $1.57 billion, a 3.29% increase over forecasts.
- Earnings per share: $6.42, beating the forecast by 14.85%.
- Return on equity (ROE): 20.7% for Q2, with full-year guidance raised to 19%.
- Net interest margin (NIM): 6.42%.

The company's stock has demonstrated remarkable momentum, with a 60.16% return over the past year and a 42.11% gain in the last six months. It currently trades at a P/E ratio of 12.33 and offers a 4.4% dividend yield.

During the earnings call, CEO Gianfranco Ferrari emphasized the company's strategic shift towards a more balanced model, highlighting the potential of the Yape digital platform. The call also addressed potential risks, including increased cost of risk with higher-yield portfolios, seasonal fluctuations in deposit growth, and the impact of SUNAT tax payments on dividend distributions.

Credicorp's next earnings report is scheduled for November 13, 2025, with analyst price targets ranging from $219 to $275.

References:

[1] https://www.investing.com/news/transcripts/earnings-call-transcript-credicorp-beats-q2-2025-forecasts-stock-rises-93CH-4195715