Aug 14, 2026 earnings call — Updated medium-term ROE and El Nino planning
Credicorp reported a 20.3% ROE this quarter and raised 2026 loan growth outlook to around 12%.
Revenue $1.8B (est $1.8B) · EPS $7.29 (est $7.31)
Key quotes
"From a macro perspective, we estimate 2027 GDP growth to remain resilient around 3% under a moderate to strong El Nino scenario."
"Our innovation portfolio contributed 9.9% of Credicorp's risk adjusted revenues."
"We now believe Credicorp has the capacity to deliver a medium-term return on equity of approximately 22%."
Analyst Q&A 12
loan growth by business type
Q (Ernesto Gabilondo · BofA): Analyst asked how loan growth will break down by segment and whether they will be conservative in risky areas given El Nino. He asked if both wholesale and retail will show double-digit growth.
A: Management said they analyze El Nino by segment and geography and will adjust appetite where needed. They still expect double-digit loan growth for both wholesale and retail absent El Nino impact.
"Yes. We are expecting I mean, again, without considering the hiccup coming from El Nino, we are expecting double digit loan growth for both wholesale and retail." — Gianfranco Piero Dario Ferrari de Las Casas (CEO)
why asset quality stays strong
Q (Brian Flores · Citibank): Analyst asked whether low cost of risk is due to better underwriting/collections or just a macro tailwind. He wanted to know how much is idiosyncratic versus macro.
A: Management said the positive macro environment helps, but they have also improved origination, monitoring and collections. They are deploying better risk capabilities, which should let them originate higher-yield loans with controlled risk.
"I think, without a doubt, the positive economic environment is a significant factor." — César Ríos
El Nino provisions details
Q (Renato Meloni · Autonomous): Analyst asked whether the $106 million provisioning was client-specific or sector-specific and whether similar provisions will recur. He also asked timing for further adjustments.
A: Management said they did provisioning client by client in wholesale and by geography/profile in retail, using scenarios and IFRS 9 expected-loss logic. They expect to reassess again around September-October and may adjust depending on severity, with another control point end Q3/start Q4.
"Talking specifically the provisioning, we have done client by client, segment by segment in the wholesale part of the portfolio." — César Ríos
which units drive ROE upside
Q (Daniel Vaz · Safra): Analyst asked which companies in the group carry the most upside to reach the refreshed midterm ROE — whether already-strong units or underperformers will improve.
A: Management listed levers: deeper penetration in lending, investment and insurance, higher risk-adjusted margins, more fee income from innovation (Yape) and operating leverage. They said improvement can come across the group — both stronger companies like BCP and Mibanco and the currently lower-performing businesses have room to improve.
"When you talk specifically, I think there is both things can be true in the sense that I believe there is still space for some improvement in ROE in the companies that are performing strong today, say, BCP, Mibanco." — Alejandro Perez-Reyes (CFO)
why raise midterm ROE target
Q (Carlos Gomez-Lopez · HSBC): Analyst asked why the bank raised the midterm ROE target now versus its historical levels and lower leverage, and whether something fundamental changed.
A: Management said they raised the target after a prior conservative stance during a big political cycle and now see stronger structural drivers. They believe current capabilities, ecosystem and higher return generation make the 22% target achievable despite being less leveraged.
"I will begin by saying that, yes, we did mention the 19.5% in October of last year, but I specifically mentioned there that we were going into a big political cycle in all of Latin America." — Alejandro Perez-Reyes (CFO)
other income and cost efficiency
Q (Yuri Fernandes · JPMorgan): Analyst asked what drove the rise in other (non-core) income this quarter and whether cost-to-income can improve as innovations scale.
A: Management said other income rises from many sources: more transactional fees, FX activity and growing monetization as they increase principal. They expect cost-to-income to improve toward about 40% in the mid term as innovations like Yape scale and operating leverage improves.
"Our view of the market takes us in that direction as our innovations scale." — Alejandro Perez-Reyes (CFO)
El Nino effect on NIM and asset quality
Q (Goldman Sachs): Analyst asked whether adjusting origination because of El Nino will mix into NIM and asset quality expectations.
A: Management said they will change origination mix in specific areas, temporarily lowering risk appetite for those clients or regions. They expect only a less pronounced change in portfolio mix while general trends continue.
"So temporarily, we are going to have let's say, a less pronounced change in the mix of the portfolio but the general trends continues." — César Ríos
size and source of Yape loan growth
Q (Andres Soto · Santander): Analyst asked how much additional El Nino provisions are already in guidance and whether the recent Yape lending acceleration comes from existing customers, new customers, or SME initiatives.
A: Management said they expect to remain within their guidance even under a severe El Nino, likely moving toward the middle or higher end but staying inside guidance. For Yape, growth comes from both individuals and SMEs, with current growth primarily in individuals, rising recurrence, ticket size and term, and gradual expansion into SMEs.
"what we are expecting is to remain within guidance even with a severe El Nino case." — Alejandro Perez-Reyes (CFO)
details on who borrows on Yape
Q (Santander): Follow-up asked whether Yape lending growth reflects multi-installment shifts, more disbursed loans, or SME lending progress.
A: Management said growth comes from both mono- to multi-installment moves and both SME and individuals, but currently individuals drive most growth because SME lending started later. They see repeat borrowing, higher ticket and longer terms contributing gradually to portfolio and NIM.
"The growth is today primarily in individuals just because the SME is a little farther behind." — Francesca Raffo Paine
Yape customer and loan scale
Q (Andres Soto · Santander): Analyst asked if there is an updated estimate of how many Yape customers could be reached by lending given recent performance.
A: Management said Yape has over 16 million users and they have reached over 5 million customers through a loan with around 2 million loans disbursed. They expect large-scale growth in small, short-term loans but have no set penetration target.
"Yape, Yape, as you know, has a base of over 16 million." — Francesca Raffo Paine
ROE risk if El Nino is severe
Q: Investor asked how much of the 22% midterm ROE is at risk if El Nino becomes severe and what cost-of-risk threshold would force a rollback.
A: Management said the midterm ROE refers to the next 2 to 3 years and is achievable despite a severe El Nino. They noted 2027 could be impacted and might have a lower ROE that year, but that would not change their midterm 22% expectation.
"When we talk about the midterm ROE, we are talking ROE for the next 2 to 3 years." — Alejandro Perez-Reyes (CFO)
dividend and provision impact
Q (Alonso Aramburú · BTG): Analyst asked about potential extraordinary dividends in H2 and requested a figure for possible provisions this year under a severe El Nino.
A: Management declined to give a numeric provision estimate and said they will update models as new data arrives, but expect to remain within guidance even in a severe scenario. They also said they are well capitalized and additional provisions should not affect any extraordinary dividend, since dividends pay profits from last year.
"the potential provisions or additional provisions because of our very strong El Nino should not affect the extraordinary dividend that we may pay this year." — Gianfranco Piero Dario Ferrari de Las Casas (CEO)