In This Article:
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Record Profitability: PEN5.5 billion for the full year 2024.
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Return on Equity (ROE): 16.5%, adjusted to 17.2% excluding one-off charges.
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Loan Growth: 0.7% increase in average daily balances and 2.2% in quarter-end balances.
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Net Interest Margin (NIM): 6.3%, with a risk-adjusted NIM of 4.9% for BCP.
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Non-Performing Loan (NPL) Ratio: Decreased by 60 basis points to 5.3%.
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Cost of Risk: Reduced to 2.1%.
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Net Interest Income: Increased by 1.1%.
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Efficiency Ratio: 45.8% for the full year 2024.
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Yape Active Users: Nearly 14 million, with significant transaction volume growth.
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Grupo Pacifico ROE: 23.7% for the full year 2024.
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Guidance for 2025: Expected GDP growth of 3%, loan growth of 3.5% in average daily balances, and ROE around 17.5%.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Credicorp Ltd (NYSE:BAP) delivered record profitability of PEN5.5 billion and an ROE of 16.5% for 2024, aligning with guidance when excluding one-off charges.
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The company experienced robust operational performance in Q4 2024, with improved cost of risk and increased lending at BCP and Mibanco.
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Credicorp Ltd (NYSE:BAP) benefited from Peru's economic recovery, with GDP expanding by over 3% in 2024 and inflation falling to 2.2%.
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The company achieved significant asset quality improvement, allowing for a more proactive lending approach, particularly in the Retail segment.
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Yape, Credicorp's digital payments platform, reached profitability in 2024 with nearly 14 million active users, doubling its transaction volume.
Negative Points
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Reported ROE was slightly below expectations due to prioritizing client relationships and mitigating risks related to the Sartor case.
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Private sector investment in Peru remains subdued, requiring political stability and structural improvements for long-term growth.
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The onset of the electoral campaign in Peru towards the end of 2025 may introduce uncertainty and affect economic conditions.
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The NIM fell 9 basis points to 6.3% in Q4 2024 due to a shift in the asset mix towards cash and equivalents and a drop in market interest rates.
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The Sartor case resulted in a PEN259 million one-off charge, impacting the company's financial performance.
Q & A Highlights
Q: What is the outlook for the Peruvian political landscape and its potential impact on loan growth? A: Gianfranco Ferrari De Las Casas, CEO, mentioned that it is too early to predict the political landscape with 30-40 potential candidates. The election's impact on loan growth is expected to be minimal until late in the year, with the industry projected to grow around 5.5%, and Credicorp aiming to exceed this with a growth of about 6%.