Credicorp ( (BAP) ) has released its Q4 earnings. Here is a breakdown of the information Credicorp presented to its investors.
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Credicorp is a leading financial services holding company in Peru, with operations in Chile, Colombia, Bolivia, and Panama, providing diversified financial services across multiple sectors. The company reported robust financial results for the fourth quarter of 2024, showcasing strong operational trends and record profitability for the fiscal year.
Despite a 26.1% quarter-over-quarter decline in net income due to extraordinary charges, Credicorp’s year-over-year net income increased by 33.8% to S/1,126.7 million, leading to a record high of S/5,501 million for the full year. Key drivers included a 4.8% increase in total deposits and loan growth in specific segments, alongside an improved net interest margin of 6.34% supported by low-cost funding and disciplined rate management.
Significant highlights include a noteworthy improvement in non-performing loan ratios, falling to 5.3%, and a decline in provisions by 14.4% quarter-over-quarter. Yape, Credicorp’s digital platform, continues to expand its user base, reaching 13.7 million monthly active users and contributing significantly to revenue growth across payments, financial, and e-commerce sectors.
Looking forward, Credicorp’s management anticipates continuing its growth trajectory by focusing on innovation, maintaining operational efficiency, and leveraging digital transformation. The company aims for an ROE of around 17.5% in 2025, driven by expected loan growth and a favorable macroeconomic environment.
