Credicorp Announces Record Net Income for Q3 2024
Company Announcements

Credicorp Announces Record Net Income for Q3 2024

Credicorp ( (BAP) ) has released its Q3 earnings. Here is a breakdown of the information Credicorp presented to its investors.

Credicorp Ltd. is a leading financial services holding company in Peru, with operations extending to Chile, Colombia, Bolivia, and Panama, specializing in banking, insurance, and investment sectors.

In its latest earnings report for the third quarter of 2024, Credicorp revealed a record net income driven by a strengthened margin, robust revenue streams, and cost control strategies. The company maintained its 2024 Return on Equity (ROE) guidance of approximately 17%.

Key highlights from the report include a 13.8% quarter-over-quarter increase in net income, reaching S/1,523.8 million, alongside a 21.3% year-over-year growth. The company’s net interest margin remained resilient at 6.4%, supported by a low-cost funding advantage. Despite a slight decline in total loans, the company reported a 4.0% year-over-year increase in total deposits, primarily from low-cost deposits. Credicorp’s digital platform, Yape, showed a significant increase in monthly active users, reaching 13 million.

The report also highlighted improvements in portfolio quality, with a decrease in the Non-Performing Loan (NPL) ratio to 5.9%, and a reduction in provisions, indicating better customer payment performance. Additionally, Credicorp’s acquisition of a 50% stake in a joint venture with Empresas Banmedica and the provisional authorization for Tenpo Bank Chile marked strategic expansions.

Looking ahead, Credicorp remains focused on achieving its profitability targets, leveraging strategic initiatives and a positive economic outlook in Peru to drive financial inclusion and sustainable growth, while continuing to enhance its competitive position in the market.

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