Credicorp (BAP) AI Stock Analysis

• Market Cap: $20.78B
• Dividend Yield: 5.29%
• Average Volume (3M): 245.50K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.59
• Revenue Growth: 8.72%
• EPS Growth: 27.70%
• Country: US
• Employees: 38,758
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 6.50
• Shares Outstanding: 79,533,100
• 10 Day Avg. Volume: 289,144
• 30 Day Avg. Volume: 245,496
• 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: 1.01
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 2.03
• 1Y Price Target: $297.33
• Price Target Upside: 12.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 25.52
• Revenue Forecast (FY): $6.64B

• Rating: 73 Outperform
• Price Target: $310.00 ▲(17.80% Upside)

Credicorp's strong financial performance and attractive valuation are the primary drivers of its stock score. The positive sentiment from the earnings call further supports the score, despite technical indicators suggesting potential short-term weakness. Political uncertainties and cash flow challenges are risks to monitor.

Positive Factors

Digital Ecosystem Expansion

The expansion of digital platforms like Yape is crucial for long-term growth, enhancing revenue streams and customer engagement in a tech-driven market.

Strong Financial Performance

A high ROE indicates efficient use of equity, supporting sustainable profitability and competitive positioning in the financial sector.

Loan Growth and Revenue Diversification

Diversified revenue streams and loan growth enhance financial stability and reduce dependency on single income sources, supporting long-term resilience.

Negative Factors

Political Uncertainty in Peru

Political instability can impact economic policies and business operations, posing risks to Credicorp's growth and strategic initiatives in Peru.

Impact of Pension Fund Withdrawals

Frequent pension fund withdrawals can lead to reduced loan demand, affecting revenue growth and financial performance in the long term.

Challenges in Bolivia

Ongoing economic challenges in Bolivia may hinder Credicorp's regional expansion efforts and profitability, impacting long-term strategic goals.

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 multiple streams, primarily from its banking and insurance operations. The banking segment earns money through interest income from loans provided to customers, fees for various banking services, and commissions on financial transactions. The insurance division generates revenue from premiums collected on policies sold, as well as investment income derived from the capital reserves held by the insurance companies. Additionally, Credicorp benefits from asset management fees through its investment management services. Strategic partnerships with other financial institutions and technology companies further enhance its service offerings and customer reach, contributing to its overall financial performance.

Credicorp Financial Statement Overview

Summary

Credicorp demonstrates strong profitability with a high EBIT margin and effective equity utilization. However, challenges in revenue growth and cash flow conversion, along with a decline in free cash flow, 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.

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	26.25B	27.00B	25.37B	20.63B	19.22B	18.22B
Gross Profit	18.78B	17.33B	15.72B	14.76B	15.36B	9.07B
EBITDA	10.37B	8.55B	7.52B	7.51B	6.02B	901.09M
Net Income	6.47B	5.50B	4.87B	4.65B	3.58B	346.89M
Balance Sheet
Total Assets	255.30B	256.09B	238.84B	235.41B	243.44B	237.41B
Cash, Cash Equivalents and Short-Term Investments	81.11B	81.72B	67.34B	64.20B	74.42B	80.11B
Total Debt	33.63B	37.49B	37.55B	39.49B	47.71B	50.97B
Total Liabilities	218.04B	221.11B	205.73B	205.82B	216.61B	211.96B
Stockholders Equity	36.56B	34.35B	32.46B	29.00B	26.29B	24.95B
Cash Flow
Free Cash Flow	4.55B	13.41B	2.93B	-2.05B	3.33B	12.05B
Operating Cash Flow	4.86B	14.52B	4.08B	-1.15B	3.97B	12.69B
Investing Cash Flow	367.43M	527.56M	-1.26B	-1.09B	-3.73B	-1.87B
Financing Cash Flow	-3.75B	-1.81B	-2.26B	-1.60B	-465.30M	-2.09B

Credicorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 263.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 263.16 is above the 20-day moving average (MA) of 255.68, above the 50-day MA of 258.06, and above the 200-day MA of 223.79, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 58.77 is Neutral, neither overbought nor oversold. The STOCH value of 86.16 is Negative, 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
BAP	73 Outperform	$20.78B	11.72	18.12%	5.29%	8.72%	27.70%
BCH	71 Outperform	$19.12B	14.99	21.29%	5.51%	-11.64%	-8.75%
CIB	71 Outperform	$16.30B	16.39	17.06%	10.22%	-6.79%	16.13%
BSAC	69 Neutral	$13.55B	12.10	24.13%	4.34%	12.43%	56.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BSBR	66 Neutral	$24.49B	23.34	9.34%	4.71%	1.13%	-11.93%
BMA	65 Neutral	$5.00B	12.00	10.91%	2.16%	-57.78%	-67.92%

Credicorp Corporate Events

Credicorp Reports Strong Q3 2025 Results with Record NIM

On November 13, 2025, Credicorp Ltd. released its financial and operating results for the third quarter of 2025, highlighting a strong performance across its core businesses. The company reported a 14.1% year-over-year increase in net income, driven by growth in universal banking and insurance, as well as a sustained recovery in microfinance. The risk-adjusted net interest margin reached a record high of 5.53%, reflecting improved risk management. Credicorp’s innovation portfolio contributed significantly to its revenues, advancing its decoupling strategy. The company also noted improvements in loan portfolio quality and a decline in provisions, indicating a positive economic recovery.

Credicorp Unveils Strategic Vision at Investor Day 2025

On October 9, 2025, Credicorp Ltd. hosted its Investor Day event in New York, presenting a strategic vision for future growth. The event highlighted Credicorp’s commitment to leveraging technology, data, and AI as key drivers for scaling operations and enhancing value. The discussions underscored the company’s focus on sustainable growth and its playbook for navigating future opportunities and challenges, positioning itself as a leader in the financial sector.