Credicorp Posts 1,929.4 Million Soles, Reaffirms 19.5% Target Return in 2026
Key Facts
Credicorp reported unaudited results on November 9 for the period ended September 30, 2026, posting net profit attributable to the company of 1,929.4 million soles in the third quarter. That was an 11.0% increase year over year, compared with a 2.6% decline from the previous quarter, while return on equity was 19.9%. The company said it still targets a return of about 19.5% for 2026 and also maintained its medium-term guidance at about 22%. The group reports its results in soles under IFRS. The figures put the quarter’s performance in the context of annual profit growth, alongside a quarterly decline in profit and returns compared with the second quarter.
In the second quarter of 2026, net profit attributable to Credicorp was about 1,981.9 million soles, and return on equity was 20.3%. Third-quarter profit was therefore below the prior period, while returns fell from their second-quarter level to 19.9%. For the first nine months of 2026, the company recorded attributable profit of 5,974.5 million soles, up 11.9%, while return on equity was 20.4%. Credicorp said it reaffirmed its annual guidance at about 19.5%, even though the return recorded in the first nine months exceeded that level. It also maintained its medium-term return outlook at about 22%.
Lending growth boosted business volumes, with outstanding loans at the end of the third quarter rising 14.8% year over year and 4.2% from the end of the second quarter. Credicorp attributed the annual growth mainly to retail banking at BCP, particularly consumer and small and medium-sized business loans. Deposits increased 14.3% year over year but fell 0.6% quarter over quarter. The company said the annual increase was supported by low-cost deposits, which accounted for 73.2% of total deposits at the end of the period. The quarterly decline was linked to the normalization of a temporary demand deposit recorded at the end of the second quarter, along with a partial shift from demand deposits to time deposits.
Core income rose 18.0% year over year to a quarterly record, while the risk-adjusted net interest margin improved to 5.7%. The company linked the improvement to wider margins and growth in transaction-related deposits. The chief executive said the innovation portfolio contributed 10.7% of risk-adjusted revenue. On credit risk, the nonperforming loan ratio improved to 3.9%, down 91 basis points year over year. The cost of risk was 2.0%, including additional provisions related to El Niño, while coverage of nonperforming loans rose to 120.9%.
Credicorp said its base-case estimate for the severity of El Niño rose to a “very strong” scenario at the end of the quarter. The risk was reflected in the 2.0% cost of risk, which included additional provisions related to the phenomenon. At the same time, loan growth coincided with an annual improvement in the nonperforming loan ratio and an increase in its coverage to 120.9%. BAP shares closed at $355.9 on November 9, 2026. In its earnings statement, the company reaffirmed that it remains on track to meet its 2026 return on equity guidance of about 19.5%.