BAP — Credicorp Ltd.

BAP (Credicorp Ltd.) Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Loan growth for 2025 was reported at 8.5%, excluding foreign exchange impacts and operations in Bolivia.
• The company expects a similar growth rate of around 8.5% for 2026, with potential double-digit growth for BCP and Mibanco.
• Net Interest Margin (NIM) is projected to remain in the mid- to high 6% range.
• Asset quality is improving, with expectations for the cost of risk to stay within target ranges, supporting risk-adjusted profitability.

2. Strategic Updates and Business Highlights:

• Credicorp is focusing on three strategic priorities: scaling and monetizing its digital ecosystem, leveraging synergies across businesses, and executing with discipline to enhance profitability.
• The company has captured over PEN 11 billion from pension fund withdrawals, which is expected to positively impact GDP and local funding deposits.
• Yape, a digital payment platform, is anticipated to grow significantly, potentially tripling its portfolio in the coming years, although it remains a smaller part of the overall business.

3. Forward Guidance and Outlook:

• For 2026, Credicorp anticipates loan growth of approximately 8.5%, with BCP and Mibanco expected to achieve double-digit growth.
• The company is preparing for potential impacts from currency devaluation in Bolivia, which could affect overall loan growth.
• Management aims to maintain a healthy capital position, with plans to distribute excess capital as dividends to shareholders in March.

4. Bad News, Challenges, or Points of Concern:

• Exposure to Ruta del Lima represents less than 1% of the portfolio, currently provisioned at 80%, with ongoing arbitration processes that may take time to resolve.
• There are concerns about the long-term impacts of pension fund withdrawals on the economy, despite short-term benefits.
• The potential for currency devaluation in Bolivia poses a risk to the overall loan portfolio and growth expectations.

5. Notable Q&A Insights:

• Management clarified that the loan growth guidance includes contributions from Yape, which is integrated within BCP's financials.
• There was discussion about the impact of pension fund withdrawals on consumption and deposits, estimating a 0.4% potential GDP impact if all funds were used for consumption.
• Questions regarding the transparency of Yape's financials were addressed, indicating ongoing efforts to provide clearer insights into its performance.
• The company reiterated its commitment to maintaining a disciplined approach to capital management and dividend distribution, aligning with shareholder interests.