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Credicorp (BAP)
NYSE:BAP
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Credicorp
(NYSE:BAP)
74Outperform
Positive Factors
Earnings Growth
Accumulated recurring net income grew 18% year-over-year in 2024, with a recurring ROAE of 17.3%, improving from the previous year.
Insurance Growth
Insurance showed strong growth supported by stronger reinsurance in the P&C Business, and the incorporation of medical services results.
Recurring Income
Recurring net income expanded 65% year-over-year and exceeded estimates if excluding the one-time fraud impact.
Negative Factors
Fraud Impact
Net income was affected by a one-time fraud impact related to Sartor, impacting the financial results.
Loan Growth
Loan growth remained flat year-over-year and came 6% below expectations, with sequentially weaker lending activity in SME Pymes and SME business.
Operating Expenses
Opex grew 16% year-over-year and came 5% above expectations due to higher expenses associated with higher employee salaries and benefits, advertising, and innovation portfolio initiatives.
Credicorp (BAP) vs. S&P 500 (SPY)
Market Cap
$15.39B
Dividend Yield4.49%
Average Volume (3M)318.93K
Price to Earnings (P/E)10.6
Beta (1Y)0.54
Revenue Growth5.84%
EPS Growth12.67%
CountryUS
Employees38,758
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.04
Shares Outstanding79,533,100
10 Day Avg. Volume261,461
30 Day Avg. Volume318,928
Financial Highlights & Ratios
PEG Ratio2.01
Price to Book (P/B)1.74
Price to Sales (P/S)0.00
P/FCF Ratio-13.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$216.00Price Target Upside4.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Credicorp Business Overview & Revenue Model
Company DescriptionCredicorp Ltd., a financial service holding company, provides various financial, insurance, and health services and products primarily in Peru and internationally. The company's Universal Banking segment offers deposits and current accounts, and various credits and financial instruments to individuals and legal entities. Its Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transportation, marine vessels, automobile, life, health, and pensions, as well as provides private pension fund management services. The company's Microfinance segment manages loans, credits, deposits, and current accounts of the small and microenterprises. Its Investment Banking and Wealth Management segment offers its services to corporations, institutional investors, governments, and foundations; engages in structuring and placement of issues in the primary market, as well as the execution and negotiation of operations in the secondary market; and structures securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.
How the Company Makes MoneyCredicorp generates revenue through its various subsidiaries, each contributing to its diverse income streams. The company's primary source of revenue is its banking operations, mainly through Banco de Crédito del Perú (BCP), which provides traditional banking services such as loans, deposits, and credit cards. BCP earns interest income from lending activities and generates fee income from transaction services. Additionally, Credicorp's insurance arm, Pacifico Seguros, contributes to revenue through the sale of life, health, and property insurance products, earning premiums and managing risk. Prima AFP, the company's pension fund manager, generates income from fees charged on assets under management. Credicorp Capital, the investment banking and asset management subsidiary, earns revenue from advisory services, trading, and asset management fees. Strategic partnerships and a strong regional presence enhance Credicorp's ability to capture market share and expand its revenue base.
Credicorp Financial Statement Overview
Summary
Credicorp shows strong profitability with a robust EBIT margin and effective equity utilization. However, there are challenges in revenue growth and cash conversion. The balance sheet remains stable with manageable leverage, but cash flow fluctuations suggest a need for improved cash management strategies.Income Statement
Credicorp shows strong profitability with a robust EBIT margin of 50.34% and a net profit margin of 30.24% for 2024. However, revenue has declined by 6.83% compared to 2023, indicating potential concerns in revenue generation. Historical data shows fluctuating revenue trends, peaking in 2023, but generally growing over the longer term since 2020.75
Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.66 and an equity ratio of 13.41%, reflecting moderate leverage and stable equity levels. Return on equity is strong at 16.02% for 2024, demonstrating effective utilization of equity. The balance sheet indicates resilience against potential financial instability, although equity levels show limited growth.70
Positive
Cash Flow
Cash flow analysis reveals a decrease in free cash flow from the previous year, with a negative growth rate of 68.39%. The operating cash flow to net income ratio is 0.22, which highlights potential challenges in converting earnings to cash. Despite a positive free cash flow to net income ratio of 0.17, the cash flow from operations shows variability, suggesting potential liquidity management issues.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 18.20B | 19.54B | 17.34B | 14.43B | 13.60B | Gross Profit |
| 18.20B | 16.18B | 17.34B | 14.43B | 13.60B | EBIT |
| 9.16B | 6.85B | 10.23B | 5.25B | 236.92M | EBITDA |
| 0.00 | 7.52B | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 5.50B | 4.87B | 4.65B | 3.58B | 346.89M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.07B | 66.62B | 64.97B | 73.73B | 79.48B | Total Assets |
| 256.09B | 238.84B | 236.75B | 244.82B | 237.41B | Total Debt |
| 28.43B | 26.76B | 26.01B | 24.81B | 22.91B | Net Debt |
| -19.08B | -7.09B | -8.10B | -14.48B | -13.82B | Total Liabilities |
| 221.11B | 205.73B | 207.17B | 217.78B | 211.96B | Stockholders Equity |
| 34.35B | 32.46B | 28.99B | 26.50B | 24.95B |
| Cash Flow | Free Cash Flow | |||
| 925.50M | 2.93B | -2.03B | 3.33B | 12.05B | Operating Cash Flow |
| 1.24B | 4.08B | -1.13B | 3.97B | 12.69B | Investing Cash Flow |
| 527.56M | -1.26B | -1.09B | -3.73B | -1.87B | Financing Cash Flow |
| 11.48B | -2.26B | -1.60B | -465.30M | -2.09B |
Credicorp Technical Analysis
Positive
206.54
Price Trends
191.62
Positive
187.82
Positive
183.75
Positive
Market Momentum
5.07
Negative
63.66
Neutral
81.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAP, the sentiment is Positive. The current price of 206.54 is above the 20-day moving average (MA) of 200.44, above the 50-day MA of 191.62, and above the 200-day MA of 183.75, indicating a bullish trend. The MACD of 5.07 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 81.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAP.
Credicorp Risk Analysis
Credicorp disclosed 17 risk factors in its most recent earnings report. Credicorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Credicorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $15.68B | 12.05 | 23.88% | 5.01% | -16.96% | -10.73% | |
77 Outperform | $11.12B | 12.21 | 15.99% | 14.91% | -0.15% | 8.78% | |
74 Outperform | $6.25B | 17.44 | 9.05% | 8.39% | -46.30% | -79.35% | |
74 Outperform | $15.39B | 10.63 | 16.35% | 4.49% | 5.84% | 12.67% | |
73 Outperform | $11.86B | 13.08 | 16.05% | 3.95% | -22.63% | 32.31% | |
70 Outperform | $20.21B | 16.83 | 10.89% | 3.81% | -3.94% | 31.52% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% |
* Financial Sector Average
Performance Comparison
BAP
Credicorp
206.54
43.55
26.72%
BCH
Banco De Chile
31.03
7.69
32.95%
BMA
Banco Macro SA
95.29
36.26
61.43%
BSBR
Banco Santander Brasil
5.36
0.10
1.90%
BSAC
Banco Santander Chile
25.32
6.18
32.29%
CIB
Bancolombia
42.18
11.03
35.41%
Credicorp Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -0.95%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, robust ROE, and positive macroeconomic conditions in Peru. Credicorp's strategic investments in digital capabilities and innovation are paying off, contributing to diversified income streams and improved asset quality. However, there are concerns about global trade uncertainties and their potential effects on Peru's economy. Additionally, some balance sheet adjustments and slower loan growth in certain segments were noted. Overall, the positive aspects outweigh the negative ones.Q1-2025 Updates
Positive Updates
Strong ROE Performance
Credicorp reported a high ROE of 20.3% for the first quarter of 2025. Even excluding extraordinary gains, the ROE would have been 18.4%, which exceeded expectations.
Positive Macroeconomic Indicators
Peru's GDP grew by 3.9% in the first quarter, supported by private spending, lower inflation, and high terms of trade. This growth is expected to continue.
Loan Growth and Asset Quality
Loan growth was particularly robust in wholesale banking short-term loans. Asset quality improved, with a cost of risk at a low of 1.6% and an NPL ratio of 5.1%.
Digital and Innovation Investment
Credicorp has expanded digital capabilities, redesigned client journeys, and achieved 5.4% risk-adjusted revenues from new businesses, advancing toward a 10% target by 2026.
Resilient NIM and Deposit Growth
Despite interest rate declines, NIM remained resilient at 6.2%. Deposit growth was strong, with low-cost deposits reaching a 41.3% market share.
Sustainability Initiatives
Credicorp embedded sustainability deeply into its strategy with initiatives in inclusive finance, financial education, and green loans.
Negative Updates
Impact of Global Trade Uncertainty
Concerns over how global trade uncertainties, including US tariffs, might affect Peru's economy, especially given its reliance on external factors.
Bolivia Balance Sheet Revaluation
A non-cash equity adjustment of around PEN257 million was made due to the revaluation of Bolivian assets, resulting in a 2% contraction in Credicorp's total assets.
Muted Loan Growth in Some Segments
Despite the positive macro environment, loan growth in some retail and microfinance segments has been slower than anticipated.
Company Guidance
During the Credicorp's First Quarter 2025 Conference Call, the company provided a comprehensive overview of its financial performance and guidance. The CEO, Gianfranco Ferrari, highlighted Peru's economic rebound with a 3.9% GDP growth in the first quarter, driven by private spending and lower inflation. The company reported a high ROE of 20.3%, with an adjusted ROE of 18.4% excluding extraordinary gains. Loan growth resumed, especially in wholesale banking and individual segments, with an anticipated acceleration in retail and microfinance segments. The risk-adjusted NIM strengthened to 5.24%, supported by improved asset quality and declining interest rates. The cost of risk fell to 1.6%, reflecting improved payment performance and proactive risk management. Credicorp maintained a strong efficiency ratio at 45.7%, while continuing to invest in innovation and digital capabilities. Looking ahead, the company expects loan book growth of around 3.5% in average daily balances and aims to achieve a structural ROE ambition of 18% by 2026. Despite potential global uncertainties, Credicorp remains optimistic about Peru's economic outlook and its ability to capture growth opportunities.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.