Summary of Credicorp Limited Q2 2026 Earnings Call

1Key Financial Results and Metrics

Return on Equity (ROE):: 20.3% for Q2 2026, with a medium-term target raised to approximately 22%.

Loan Growth:: Total loans increased by 13.1% year-over-year, with a quarter-over-quarter growth of 4.7%.

Net Interest Margin (NIM):: Reported at 6.6%, supported by a favorable loan mix and low funding costs.

Non-Performing Loan (NPL) Ratio:: Improved to 4.1%, reflecting better origination quality and collections.

Cost of Risk:: Stood at 1.9%, incorporating $106 million in provisions related to El Niño risks.

2Strategic Updates and Business Highlights

Economic Outlook:: Management expressed confidence in Peru's economic recovery, citing improved business confidence, private investment growth, and favorable commodity prices.

Innovation Contribution:: The innovation portfolio accounted for 9.9% of risk-adjusted revenues, with significant growth from digital platforms like Yape.

BCP Performance:: BCP reported a strong ROE of 29.2%, driven by retail and wholesale loan growth.

Mibanco and Grupo Pacifico:: Mibanco achieved a ROE of 22.9%, while Grupo Pacifico's ROE was 19.1%, indicating solid performance across subsidiaries.

3Forward Guidance and Outlook

Loan Growth Forecast:: Expected to reach around 12% for 2026, with a focus on retail banking.

Cost of Risk Guidance:: Anticipated to remain within guidance despite potential impacts from El Niño.

Fee Income Growth:: Projected high teens growth driven by increased transactional activity.

Efficiency Ratio:: Expected to remain within guidance, with a target of around 40% in the medium term.

4Challenges and Points of Concern

El Niño Risks:: While viewed as a manageable shock, El Niño poses potential short-term volatility, particularly affecting agriculture and fishing sectors.

Asset Quality Monitoring:: The company is actively monitoring the impact of El Niño on asset quality and has incorporated provisions accordingly.

Market Conditions:: The economic environment remains mixed across the region, with varying growth prospects in Chile and Colombia.

5Notable Q&A Insights

Loan Growth Breakdown:: Management indicated expectations for double-digit growth in both retail and wholesale segments, despite potential El Niño impacts.

Asset Quality Management:: Analysts questioned the sustainability of low cost of risk amid rapid growth; management attributed it to improved underwriting and collections capabilities.

Dividend Outlook:: Management reassured that potential provisions for El Niño should not affect the extraordinary dividends planned for the year.

ROE Target Justification:: The increase in the mid-term ROE target was explained as a reflection of improved operational capabilities and a more favorable economic environment. Overall, Credicorp's Q2 2026 performance reflects strong operational execution and confidence in future growth, despite acknowledging potential risks associated with El Niño and regional economic conditions.