Credicorp (BAP) Q4 2025 Earnings Call Transcript

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• Yape operates within BCP's book and does not have a standalone financial statement; Credicorp is working on providing more transparency

  80% confidence

• Credicorp expects cost-to-income ratio to decline in 2026; the upper bound of guidance is below 2025's result

  80% confidence

• Yape's lending book is expected to approximately triple in the next couple of years; it carries a bigger margin than other books but remains a smaller proportion of overall group book

  80% confidence

• Bolivia will likely need currency devaluation to move forward, which would negatively impact Credicorp's Bolivia book and is included in the 8.5% group guidance

  80% confidence

• Pension fund withdrawals will also reduce cost of risk in mid and higher segment individuals

  80% confidence

• Credicorp's three strategic priorities are: scale and monetize digital ecosystem, leverage synergies across businesses, and execute with discipline applying clear profitability thresholds

  80% confidence

• 2026 group loan growth guidance is 8.5%, but Bolivia currency devaluation risk is included as a headwind. BCP and Mibanco standalone are expected to grow at double digits (~11% at constant exchange rates)

  80% confidence

• Credicorp's policy is to send all excess capital to the holding company and declare an increasing ordinary dividend each year, with potential extraordinary dividend depending on conditions

  80% confidence

• Pension withdrawals expected to have +0.5% impact on deposits/local funding and -0.4% impact on credit in 2026

  80% confidence

• BCP internal CET1 floor is 11%; Mibanco internal CET1 floor is 14.5%. Capital above those levels will be distributed as dividends in March/April

  80% confidence

• Only Pacifico among Credicorp subsidiaries has a position in Ruta del Lima; BCP and no other subsidiary has such exposure

  80% confidence

• Pension withdrawals could add approximately 0.4% to Peru GDP if all funds go to consumption

  80% confidence

• Credicorp expects a near-term partial payment on the Ruta del Lima bond of approximately 5-10% of the bond value and does not expect further deterioration

  80% confidence

• BCP 2025 loan growth was 8.5% excluding FX and Bolivia impacts

  80% confidence

• Ruta del Lima represents less than 1% of Pacifico's portfolio, is provisioned at 80%, not accruing interest, and subject to US arbitration proceedings

  80% confidence

• Total Peru pension fund withdrawals were PEN 25 billion; BCP captured slightly more than PEN 11 billion of those inflows

  80% confidence

• Credicorp enters 2026 with a healthy pipeline, improving trade environment, and expects loan growth of ~8.5%, stable NIM in mid-to-high 6% range, improved cost of risk, and fee income at low double-digit growth

  80% confidence

Cited in these Via News reports

• Britain's Stealth Tax Experiment Reshapes Global Investment Calculus →
• Global Insurers Hold $35B+ Liquidity While Betting on AI, Quantum Computing →
• U.S. spending bill risks $5.5 trillion debt surge, threatens Social Security by 2032 amid global fiscal pressures →
• US Debt to Surge $5.5 Trillion by 2034 as Social Security Faces 2032 Insolvency →
• US Social Security Insolvency Date Moves to 2032 as $5.5tn Debt Bill Strains Federal Reserve →