Credicorp (NYSE:BAP) executives said the company ended 2025 with “record high net income” and improving asset quality, supported by a stronger-than-expected economic backdrop in Peru and continued growth across its banking, microfinance, insurance, and digital businesses.
Macro backdrop: Peru strength and mixed regional trends
Chief Executive Officer Gianfranco Ferrari said Peru’s economy exceeded expectations in 2025, with GDP growing around 3.5%. He cited strong domestic demand, resilient consumption, and record exports above $90 billion, alongside rising commodity prices—particularly copper, silver, and gold. Management also pointed to an estimated $64 billion mining investment pipeline for 2025, up 17% from 2024.
Across the region, management described Colombia and Chile as growing around 2.7% in 2025, while Bolivia contracted for a second consecutive year and saw inflation rise to around 20%.
Consolidated results: profitability, margins, and credit quality
Ferrari said Credicorp delivered a 16.9% ROE in the fourth quarter and 19% for the full year, reflecting diversification across businesses and “continued improvements in risk metrics.” Pérez-Reyes said loans (quarter-end balances) increased 3.6% quarter-over-quarter, driven mainly by BCP and Mibanco.
Credit quality improved, with the NPL ratio at 4.5% and cost of risk at 1.8% in the quarter. Pérez-Reyes said NPL volumes contracted across segments and that the NPL coverage ratio rose to 112.4%.
On revenue drivers, management highlighted:
- Net interest income increased 4.2% quarter-over-quarter, aided by loan growth and lower interest expenses as rates fell and low-cost deposits expanded.
- Low-cost deposits represented 61.4% of the funding base in the quarter.
- NIM was 6.6% for the quarter, while Ferrari cited risk-adjusted NIM of 5.5% for the quarter.
- Fee income increased 5.2% quarter-over-quarter, boosted by transactional activity at Yape and BCP.
- FX gains rose 8.2% due to higher volumes at BCP.
Insurance underwriting results fell 17.4% in the quarter due to normalization in the disability and survivorship line in the life business, following favorable extraordinary reversals in the prior quarter. Management said underlying insurance performance was otherwise relatively stable.
Business updates: BCP, Mibanco, insurance, and investment management
In Universal Banking, management said BCP reinforced its leadership in Peru, supported by a shift to a more efficient multi-channel model and expanded data and AI capabilities. Ferrari said BCP served more than 3.2 million loan clients.
Pérez-Reyes said BCP’s full-year ROE was 24.7%. Quarter-over-quarter loan growth was 1.7% (2.7% FX-neutral), and NIM was 6.1%. He said “other core income” rose 5.9% on fees, including contributions from Yape and transactional services. BCP’s efficiency ratio for the year was 39.7%, which he attributed partly to personnel expenses tied to commercial and technology investments.
In microfinance, management said Mibanco delivered double-digit loan growth and higher profitability, supported by its hybrid model and AI-driven risk analytics. Pérez-Reyes said Mibanco’s quarterly profitability was 20%, with NIM at 15.2% and the NPA ratio falling to 5.3%, which he called an 11-year low. Mibanco’s full-year ROE contribution was 16.6%, with management reiterating a medium-term target “in the low 20s.”
For Mibanco Colombia, Pérez-Reyes said results improved with profitability at 13.2% at quarter-end and 10.3% for the full year, compared with losses in 2024.
In insurance and pensions, Pérez-Reyes said Grupo Pacífico delivered 21.4% ROE for 2025. Full-year net income rose 13%, which he said was driven primarily by the full consolidation of the Banmedica transaction; excluding consolidation effects, net income increased 4%.
In investment management and advisory, management said full-year ROE increased to 16.4%. Pérez-Reyes said asset management AUM grew 35% and wealth management AUM grew 24%, though wealth management revenues were pressured by lower market rates.
Digital ecosystem and strategic actions: Yape, Tenpo, and Helm Bank
Ferrari said risk-adjusted revenues from the innovation portfolio represented 8.1% by the fourth quarter, progressing toward the company’s 10% goal. He said Yape closed 2025 with nearly 16 million monthly active users and average engagement of 66 transactions per month. Pérez-Reyes said Yape’s NPS peaked at 81 by year-end and monthly revenue per MAU reached PEN 9.6 as of December 2025. Payments accounted for over half of Yape’s revenues, while lending represented 23% of revenues.
Management said Yape has disbursed over 16 million loans to 4.1 million users, with almost one-third described as first-time borrowers. In Q&A, Chief Risk Officer Cesar Rios said the lending mix is shifting from very short-term “monocuota” loans to longer-duration “multicuota” loans, increasing duration from under one month to more than six months. He said the expected cost of risk should remain controlled, with the risk-adjusted NIM expected to remain at comparable levels, albeit with changing composition.
Ferrari also cited progress in Chile, where Tenpo surpassed 2.5 million clients and became the country’s first neobank after approval of its banking license in January.
On M&A, Ferrari said Credicorp took full ownership of its medical insurance business and announced an agreement to acquire Helm Bank, describing it as aligned with a niche strategy to enhance its U.S. offering without pursuing a universal banking model there. Management said Credicorp agreed to acquire 100% of Helm Bank for $180 million in cash; Helm has more than $1 billion in assets and a presence in Florida.
2026 guidance and election-year commentary
Pérez-Reyes guided to Peru GDP growth of around 3.5% in 2026 and total loan book growth of around 8.5% (quarter-end balances). He said the consolidated figure reflects potential FX-related headwinds in Bolivia; excluding that, he said BCP and Mibanco are expected to grow loans at a double-digit pace (around 11% at constant exchange rates).
Management’s 2026 guidance included:
- NIM between 6.4% and 6.7%
- Cost of risk between 1.7% and 2.1%
- Risk-adjusted NIM between 5.3% and 5.6%
- Efficiency ratio between 45% and 46.5%
- Non-interest income growth in the low double digits
- ROE of around 19.5%
In Q&A, Ferrari discussed Peru’s political landscape based on a recent poll he referenced, noting Rafael López Aliaga leading at 12% and Keiko Fujimori at 8%, with a large share of undecided or blank votes around 42%. He said all elections, including the new dual-chamber legislative vote, would take place on April 12.
Separately, executives addressed operating expenses, saying investments in innovation and core capabilities are expected to generate operating leverage. Ferrari and Pérez-Reyes said digital initiatives are expected to be ROE-positive beginning in 2026. Pérez-Reyes also said Credicorp intends to revisit its midterm ROE outlook after upcoming elections, potentially updating targets “north of the 20% mark,” but did not provide a specific figure.
About Credicorp (NYSE:BAP)
Credicorp Ltd. (NYSE: BAP) is a Lima-based financial services holding company that operates a diversified group of banking, insurance, and investment businesses. Established in the mid-1990s, Credicorp’s principal subsidiaries include Banco de Crédito del Perú (BCP), Mibanco (microfinance), Credicorp Capital (investment banking and asset management) and Pacífico Seguros (insurance). The company serves retail, commercial and corporate clients and is one of the largest financial conglomerates in Peru.
Through Banco de Crédito del Perú and its retail network, Credicorp provides a full suite of banking products including deposit accounts, consumer and commercial loans, mortgages, payment and transaction services, and digital banking solutions.
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