Credicorp (BAP) AI Stock Analysis

• Market Cap: $21.16B
• Dividend Yield: 5.3%
• Average Volume (3M): 388.70K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.48
• Revenue Growth: 5.16%
• EPS Growth: 27.77%
• Country: US
• Employees: 38,758
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 6.56
• Shares Outstanding: 79,533,100
• 10 Day Avg. Volume: 383,398
• 30 Day Avg. Volume: 388,698
• PEG Ratio: 0.76
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 4.10
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 1.85
• 1Y Price Target: $257.33
• Price Target Upside: -2.40% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $310.00 ▲(17.58% Upside)

Credicorp's strong financial performance and attractive valuation are key strengths, supported by optimistic earnings call guidance. However, technical indicators suggest caution due to overbought conditions, and challenges in revenue growth and cash conversion need addressing.

Positive Factors

Digital Innovation

Credicorp's digital platform, Yape, is a significant growth driver, enhancing customer engagement and contributing to fee income.

Strong ROE Performance

High ROE indicates efficient capital use and strong profitability, supporting long-term financial health and investor confidence.

Stable Credit Rating

A stable credit rating reflects strong liquidity management and financial stability, enhancing Credicorp's credibility and borrowing capacity.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in market demand or competitive pressures, impacting future growth prospects.

Cash Flow Challenges

Decreased free cash flow indicates potential liquidity issues, affecting Credicorp's ability to invest in growth and manage debt.

Tax Dispute Impact

The tax dispute with SUNAT could strain cash reserves and distract management, impacting operational focus and financial flexibility.

Credicorp Business Overview & Revenue Model

Company Description

Credicorp 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 Money

Credicorp generates revenue through several key streams, primarily from interest income on loans and advances provided through its banking operations. The company's main revenue source comes from the interest rate spread between loans and deposits. Additionally, Credicorp earns fees and commissions from various services, including transaction fees, asset management fees, and insurance premiums. The company also benefits from investment income generated from its portfolio of securities. Significant partnerships with local and international financial institutions enhance its service offerings and expand its customer base, contributing to its overall earnings. Furthermore, the growth of digital banking services has opened new avenues for revenue through technology-driven financial products.

Credicorp Financial Statement Overview

Summary

Credicorp exhibits strong profitability with a robust EBIT margin and effective equity utilization. However, challenges in revenue growth and cash conversion are evident, with a decline in revenue and cash flow fluctuations. The balance sheet remains stable with manageable leverage.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.83B	27.00B	25.37B	20.63B	19.22B	18.22B
Gross Profit	19.25B	17.33B	15.72B	14.76B	15.36B	9.07B
EBITDA	9.73B	8.55B	7.52B	7.51B	6.02B	901.09M
Net Income	6.25B	5.50B	4.87B	4.65B	3.58B	346.89M
Balance Sheet
Total Assets	249.03B	256.09B	238.84B	235.41B	243.44B	237.41B
Cash, Cash Equivalents and Short-Term Investments	79.32B	81.72B	67.34B	64.20B	74.42B	80.11B
Total Debt	34.53B	37.49B	37.55B	39.49B	47.71B	50.97B
Total Liabilities	213.96B	221.11B	205.73B	205.82B	216.61B	211.96B
Stockholders Equity	34.46B	34.35B	32.46B	29.00B	26.29B	24.95B
Cash Flow
Free Cash Flow	2.33B	13.41B	2.93B	-2.05B	3.33B	12.05B
Operating Cash Flow	2.54B	14.52B	4.08B	-1.15B	3.97B	12.69B
Investing Cash Flow	618.84M	527.56M	-1.26B	-1.09B	-3.73B	-1.87B
Financing Cash Flow	-3.96B	-1.81B	-2.26B	-1.60B	-465.30M	-2.09B

Credicorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 263.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 263.66 is below the 20-day moving average (MA) of 264.04, above the 50-day MA of 251.46, and above the 200-day MA of 204.04, indicating a neutral trend. The MACD of 4.17 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 27.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAP.

Credicorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIB	81 Outperform	13.79B	14.84	14.39%	12.49%	-8.82%	4.87%
BSAC	76 Outperform	12.41B	11.16	16.23%	5.07%	12.43%	56.30%
BAP	73 Outperform	$21.16B	12.55	18.54%	5.30%	5.16%	27.77%
BCH	73 Outperform	15.37B	12.06	19.19%	6.98%	-13.16%	-8.10%
BSBR	70 Outperform	20.19B	19.97	―	5.76%	-3.77%	-10.59%
BMA	63 Neutral	3.26B	7.91	8.04%	2.39%	-57.78%	-67.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Credicorp Corporate Events

Credicorp Clarifies Dividend Policy Amid Tax Dispute

On August 18, 2025, Credicorp Ltd. addressed misleading information published in a Peruvian newspaper, clarifying that while no extraordinary cash dividends will be distributed for the remainder of the year due to a payment to the tax authority Sunat, regular dividend policies remain unchanged. The payment of S/1.577 billion relates to a tax dispute, which Credicorp plans to challenge, and while it impacts cash flow, it does not affect the company’s operational results. The company maintains a positive outlook on its business performance, with growth in retail banking and expectations for its digital platform, Yape, to become a significant business line.

Credicorp Reports Strong Q2 2025 Results with Record ROE and Strategic Gains

Credicorp Ltd. reported strong financial results for the second quarter of 2025, with a 36.1% year-on-year increase in net income, driven by gains in its investment portfolio and robust performance in core businesses. The company achieved a record-high return on equity of 20.7% and a risk-adjusted net interest margin of 5.44%. Credicorp’s strategy to decouple its revenue streams is progressing, with 6.2% of risk-adjusted revenues coming from its innovation portfolio, aiming for a 10% target by 2026. The company also announced the cancellation of approximately 1.6 billion soles in tax resolutions, which will be recorded as an asset.

Credicorp’s Grupo Credito Sees Tax Assessment Canceled

On August 13, 2025, Credicorp Ltd. announced that its subsidiary, Grupo Credito S.A., has had a significant tax assessment and fine totaling S/1,577,174,872.00 canceled by the Peruvian Tax Authority. Despite this cancellation, Grupo Credito intends to pursue legal action to challenge the resolutions, indicating a proactive approach in defending its financial interests.

Credicorp Announces Major Leadership Changes Effective January 2026

On July 15, 2025, Credicorp Ltd. announced significant organizational changes across its subsidiaries, effective January 1, 2026. Key executive shifts include Eduardo Montero Dasso becoming CEO of Pacífico Compañía de Seguros y Reaseguros, Galantino Gallo Quiroz taking over as CEO of Credicorp Capital Ltd. and its related entities, and Sergio Vélez Montes stepping in as CEO of Prima AFP. These changes reflect a strategic realignment within the company, potentially impacting its operational dynamics and market positioning.

Fitch Affirms Credicorp’s ‘BBB’ Rating with Stable Outlook

On July 1, 2025, Fitch Ratings affirmed Credicorp Ltd.’s Long Term Foreign Currency rating at ‘BBB’ with a stable outlook, reflecting the company’s strong liquidity management and low double leverage. This affirmation underscores Credicorp’s consistent performance and robust corporate strategy, supported by substantial dividend flows from its subsidiaries, particularly BCP. The rating update, disclosed in compliance with Peruvian law, highlights Credicorp’s solid industry positioning and the potential implications for its stakeholders, as the ratings are closely tied to the performance of its main subsidiary.

Credicorp’s Grupo Credito Faces Tax Dispute with SUNAT

On June 27, 2025, Credicorp’s subsidiary, Grupo Credito S.A., was notified of tax and fine resolutions by the Peruvian Tax Administration (SUNAT) related to transactions from 2018 and 2019. These resolutions claim that Grupo Credito failed to withhold income tax on share purchase transactions involving Banco de Credito del Peru’s shares. Grupo Credito plans to contest these resolutions, arguing they lack legal foundation and are abusive.