Credicorp (NYSE:BAP) reported a strong first quarter of 2026, with management citing record-high net income, robust loan growth, improved asset quality and expanding contributions from digital initiatives as key drivers of performance.
Chief Executive Officer Gianfranco Ferrari said the company delivered a 21.1% return on equity in the quarter, ahead of expectations, reflecting “strong fundamentals across our core businesses.” Chief Financial Officer Alejandro Perez-Reyes said the result was supported by 8.2% year-over-year growth in quarter-end loan balances, a lower cost of risk and double-digit growth in net interest income, fee income and foreign exchange gains.
Credicorp also declared what management described as a record ordinary dividend of PEN 50 per share, which Ferrari said was enabled by the group’s strong solvency while still supporting long-term growth plans.
Peru Outlook Remains Positive, but Risks Rise
Ferrari said Peru’s economic momentum remains solid despite temporary supply-side shocks, including higher oil prices tied to Middle East tensions, a localized energy disruption and adverse weather conditions that affected primary sectors. Credicorp maintained its 2026 GDP growth expectation at around 3.5%, though Ferrari said the outlook is now “more skewed to the downside,” with recent indicators tracking closer to 3.2%.
Management emphasized that domestic demand remains a more relevant driver for loan growth, with Ferrari noting it is growing above 4%. Perez-Reyes said domestic demand was expected to have expanded by more than 5% year over year in the first quarter for the sixth consecutive quarter, while indicators such as light vehicle sales, capital goods imports and cement consumption posted strong gains.
The company also discussed political uncertainty surrounding Peru’s presidential election. Ferrari said the runoff appeared likely to feature candidates with markedly different economic visions, though he added that Peru’s institutional safeguards and the composition of the Senate should help preserve macroeconomic stability and central bank independence.
On El Niño, Chief Risk Officer Cesar Rios said Credicorp is monitoring both the coastal El Niño and the Central Pacific El Niño. He said the coastal event is already having a low-to-moderate effect, including disruption to the fishing season, but the company has not yet changed its credit policy. Perez-Reyes noted that past El Niño events reduced Peru’s GDP by 0.8% to 1.7%, depending on severity.
Loan Growth and Margins Strengthen
Credicorp’s net interest income rose 10.9% year over year, driven by loan growth, lower interest expenses and an improved funding mix. Low-cost deposits represented 63.9% of the funding base at quarter-end, while Credicorp’s net interest margin stood at 6.6%.
BCP, Credicorp’s banking subsidiary, generated a 30.5% ROE in the quarter. Total loans at BCP rose 7.3% year over year, or 9.1% on an FX-neutral basis, driven by both wholesale and retail banking. Perez-Reyes said wholesale loan disbursements were supported by a favorable outlook for private investment, while retail growth reflected increased risk appetite in consumer loans and SME-PYME lending, along with stronger mortgage disbursements as rates declined.
Ferrari said Peru’s wholesale loan demand is recovering after several years of flat growth, following a period marked by COVID-19, political instability and weak private investment. He said private investment grew at a double-digit pace last year and has continued to show momentum, with some companies operating at full capacity.
Credicorp’s consolidated asset quality improved, with the nonperforming loan ratio declining to 4.3%. The cost of risk fell to 1.3%, supported by better repayment trends, strengthened collections and underwriting standards, and one-time factors including pension fund withdrawals and wholesale recoveries. Rios said the quarter’s low cost of risk included temporary benefits, but also reflected structural improvements in origination and risk management.
Yape Expands Monetization and Digital Role
Management highlighted continued growth at Yape, Credicorp’s digital payments and financial services platform. Perez-Reyes said Yape reached 16.4 million monthly active users, equivalent to about 82% of Peru’s economically active population. Users transacted 67 times per month, and the platform reported a net promoter score of 77.
Revenue per monthly active user increased 65% year over year to PEN 10.3, while expenses per monthly active user rose 26% to PEN 5.9. Perez-Reyes said this showed rising operating leverage. Yape represented 17% of Credicorp’s fee income and 8% of the group’s risk-adjusted revenue in the quarter, up from 12% and 5%, respectively, a year earlier.
Lending was Yape’s fastest-growing vertical, with revenue up 3.6 times year over year. The platform disbursed more than 5.7 million loans in the quarter, and credit penetration reached approximately 30% of monthly active users.
Chief Innovation Officer Francesca Raffo said Yape Bolivia has grown steadily and now has more than 2 million customers, while Credicorp is also leveraging Tenpo in Chile under its newly formed neobank unit. Ferrari said the unit, created April 1, brings together Yape in Peru, Yape in Bolivia, iO and Tenpo under Raimundo Morales Dasso.
Other Businesses Show Mixed but Solid Trends
Mibanco delivered 21.7% ROE, with loans up 12.4% year over year and its nonperforming loan ratio falling to 4.9%, which Perez-Reyes described as an all-time low. He said Mibanco’s cost of risk could gradually normalize in the second half of 2026 as the company incorporates newer and smaller customer segments, but remains within risk appetite.
Mibanco Colombia also improved, reporting double-digit loan growth and 18.3% profitability, compared with single-digit levels a year earlier.
Grupo Pacífico generated 18.9% ROE. Organic net income rose 11% year over year, driven mainly by the life insurance business and partially offset by weaker property and casualty results. Including full consolidation of Pacífico Salud, consolidated net income rose 19% year over year.
Credicorp’s investment management and advisory business posted 15.7% ROE. Revenues benefited from stronger wealth and asset management performance, with assets under management rising 28% and 34%, respectively, though net income fell 8% due partly to higher operating expenses against a low comparison base.
Guidance Reaffirmed, With Upside Potential
Credicorp maintained its 2026 guidance, including Peru GDP growth around 3.5%, total loan growth of about 8.5% in quarter-end balances, or about 10.5% on an FX-neutral basis, and NIM between 6.4% and 6.7%.
Management said cost of risk is expected to move toward the lower end of its guidance range as retail origination increases. Perez-Reyes said Credicorp is maintaining ROE guidance around 19.5%, but first-quarter strength and positive trends suggest the company is “well-positioned to achieve results on the upper side of this level.”
Ferrari said the company remains cautious because of global uncertainty, Peru’s elections and El Niño risks, but emphasized that Credicorp’s strategy remains focused on growth, especially in retail, microfinance and digital financial services.
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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