Credicorp Ltd. (BAP)

Credicorp Ltd. (BAP) Financial Services Profile

Credicorp Ltd., a Peruvian financial services leader, provides diverse banking, insurance, and wealth management solutions across multiple segments. With a strong presence in Peru and a growing international footprint, the company leverages its established brand and extensive network to serve individuals, businesses, and institutions, demonstrating consistent profitability and a commitment to financial inclusion.

What Is the Investment Thesis for BAP?

Credicorp Ltd. presents a notable research candidate driven by its strong market position in Peru, diversified business segments, and consistent profitability. With a P/E ratio of 13.2 and a healthy profit margin of 24.7%, Credicorp demonstrates financial stability and growth potential. The company's dividend yield of 4.21% offers an attractive income stream for investors. Key growth catalysts include the expansion of its microfinance segment, leveraging technological advancements in its universal banking services, and capitalizing on the increasing demand for insurance and pension products in Peru. Potential risks include regulatory changes, economic fluctuations in the region, and increased competition from both local and international financial institutions. Credicorp's beta of 0.89 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

BAP Key Highlights

• Market capitalization of $31.17B reflects Credicorp's significant presence and investor confidence in the Peruvian financial market.
• Profit margin of 24.7% indicates strong operational efficiency and profitability compared to regional peers.
• Gross margin of 75.4% showcases the company's ability to generate substantial revenue from its core financial services.
• Dividend yield of 4.21% provides an attractive income stream for investors, highlighting Credicorp's commitment to shareholder returns.
• Beta of 0.89 suggests lower volatility compared to the overall market, indicating a relatively stable investment.

Who Are BAP's Competitors?

BAP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BAP's Key Strengths?

• Strong market position in Peru.
• Diversified business segments.
• Experienced management team.
• Established brand reputation.

What Are BAP's Weaknesses?

• Concentration of operations in Peru.
• Exposure to regulatory changes.
• Dependence on economic conditions in the region.
• Potential for increased competition.

What Could Drive BAP Stock Higher?

• Digital transformation initiatives enhancing customer experience and operational efficiency.
• Expansion of microfinance services to underserved communities.
• Growth in insurance and pension product offerings.
• Potential strategic acquisitions in Latin America within the next 2 years.
• Launch of new digital banking platform in Q4 2026.

What Are the Key Risks for BAP?

• Financial-distress signal — its Altman Z-Score of 0.67 sits in the distress zone (elevated bankruptcy risk).
• Insider selling — insiders were net sellers of roughly $1.5M recently.
• Economic slowdown in Peru impacting loan growth and asset quality.
• Increased competition from fintech companies and international banks.
• Regulatory changes impacting capital requirements and operational costs.
• Cybersecurity threats and data breaches compromising customer data.
• Fluctuations in currency exchange rates affecting financial performance.

What Are the Growth Opportunities for BAP?

• Expansion of Microfinance Segment: Credicorp has a significant opportunity to expand its microfinance segment, catering to the underserved small and micro-enterprise market in Peru. This segment can drive revenue growth and promote financial inclusion. The microfinance market in Peru is estimated to be worth $5 billion, with a potential growth rate of 8-10% annually. By leveraging technology and innovative lending solutions, Credicorp can increase its market share and improve access to finance for small businesses, fostering economic development. Timeline: Ongoing.
• Digital Transformation of Universal Banking: Credicorp can further enhance its universal banking services through digital transformation, offering customers convenient and efficient online and mobile banking solutions. This includes investing in fintech partnerships and developing innovative digital products. The digital banking market in Peru is projected to reach $3 billion by 2028, growing at a CAGR of 15%. By embracing digital technologies, Credicorp can attract new customers, reduce operational costs, and improve customer satisfaction. Timeline: Ongoing.
• Growth in Insurance and Pension Products: The demand for insurance and pension products in Peru is increasing, driven by rising awareness and a growing middle class. Credicorp can capitalize on this trend by expanding its insurance and pension offerings, providing comprehensive coverage and retirement solutions to individuals and businesses. The insurance market in Peru is expected to grow at a rate of 6-8% annually. By developing innovative and tailored insurance products, Credicorp can capture a larger share of the market and enhance its revenue streams. Timeline: Ongoing.
• Strategic Investments in Wealth Management: Credicorp has the opportunity to grow its wealth management segment by offering personalized investment solutions and advisory services to high-net-worth individuals and institutional investors. This includes expanding its range of investment products and leveraging its expertise in asset management. The wealth management market in Peru is estimated to be worth $10 billion, with a potential growth rate of 7-9% annually. By providing superior investment performance and client service, Credicorp can attract and retain high-value clients. Timeline: Ongoing.
• International Expansion in Latin America: Credicorp can explore opportunities for international expansion in other Latin American countries, leveraging its expertise and experience in the Peruvian market. This includes establishing strategic partnerships and acquiring local financial institutions. The Latin American financial services market is expected to grow at a rate of 5-7% annually. By expanding its geographic footprint, Credicorp can diversify its revenue streams and reduce its reliance on the Peruvian market. Timeline: 3-5 years.

What Opportunities Does BAP Have?

• Expansion of microfinance segment.
• Digital transformation of banking services.
• Growth in insurance and pension products.
• International expansion in Latin America.

What Threats Does BAP Face?

• Economic downturn in Peru.
• Increased competition from local and international players.
• Regulatory changes impacting financial services.
• Cybersecurity risks and data breaches.

What Are BAP's Competitive Advantages?

• Strong brand recognition and reputation in Peru.
• Extensive network of branches and ATMs across the country.
• Diversified business segments providing a range of financial services.
• Established relationships with key clients and partners.
• Experienced management team with a proven track record.

What Does BAP Do?

Founded in 1889 and headquartered in Lima, Peru, Credicorp Ltd. has evolved into a leading financial services holding company with a significant presence in Peru and a growing international reach. The company operates through four primary segments: Universal Banking, Insurance and Pensions, Microfinance, and Investment Banking and Wealth Management. The Universal Banking segment offers a comprehensive suite of financial products and services, including deposits, current accounts, and various credit and financial instruments, catering to individuals and legal entities. The Insurance and Pensions segment provides insurance policies covering commercial property, transportation, marine vessels, automobile, life, health, and pensions, alongside private pension fund management services. The Microfinance segment focuses on managing loans, credits, deposits, and current accounts for small and micro-enterprises, promoting financial inclusion and economic development. The Investment Banking and Wealth Management segment serves corporations, institutional investors, governments, and foundations, offering services such as structuring and placement of issues in the primary market, execution and negotiation of operations in the secondary market, securitization processes, and mutual fund management. Credicorp's commitment to innovation, customer service, and sustainable growth has solidified its position as a key player in the financial services industry in the region.

What Products and Services Does BAP Offer?

• Provides universal banking services to individuals and businesses.
• Offers insurance policies covering various risks, including property, transportation, and health.
• Manages private pension funds for individuals.
• Provides microfinance services to small and micro-enterprises.
• Offers investment banking services to corporations and institutional investors.
• Provides wealth management services to high-net-worth individuals.
• Engages in structuring and placement of issues in the primary market.
• Executes and negotiates operations in the secondary market.

How Does BAP Make Money?

• Generates revenue through interest income from loans and credits.
• Earns premiums from insurance policies.
• Collects fees from pension fund management.
• Charges fees for investment banking and wealth management services.
• Profits from trading and investment activities.

What Industry Does BAP Operate In?

Credicorp Ltd. operates within the dynamic financial services industry in Peru and the broader Latin American region. The industry is characterized by increasing demand for financial services, driven by economic growth and a rising middle class. Competition is intensifying, with both local and international players vying for market share. Trends include the adoption of digital banking solutions, the growth of microfinance, and the increasing importance of wealth management services. Credicorp is well-positioned to capitalize on these trends, leveraging its established brand, extensive network, and diversified business segments. The regional banking sector is expected to grow at a rate of 5-7% annually over the next five years, presenting significant opportunities for Credicorp.

Who Are BAP's Key Customers?

• Individuals seeking banking and insurance services.
• Small and micro-enterprises requiring microfinance solutions.
• Corporations and institutional investors needing investment banking services.
• High-net-worth individuals seeking wealth management services.
• Government entities and foundations.

Credicorp Ltd. (BAP) Valuation Context

Valued at $31.17B, BAP is classified as a large-cap stock. Relative to its peer group, BAP's quantitative score of 57/100 is roughly in line with the peer average of 51/100.

BAP Revenue & Earnings Trend

In Q1 2026, BAP generated $7.74B in top-line revenue, marking a sequential decrease of 6.9%. The company recorded net income of $2.06B, with diluted EPS of $25.91. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Financial Services. Across the four most recent quarters, BAP averaged $22.62 in diluted EPS.

Company Profile

Credicorp Ltd. operates in the Banks - Diversified industry within the Financial Services sector. It is headquartered in Lima, PE. The company is led by CEO Gianfranco Piero Dario Ferrari de Las Casas. BAP has traded publicly since 1995.

ROE 20%Key Financial Metrics

Return on equity for Credicorp Ltd. stands at 19.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.7%, showing how much profit it generates from its asset base. BAP trades at a trailing price-to-earnings ratio of 13.16, below the Financial Services sector average of ~18x. Its free cash flow yield is 7.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.91 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 7.6%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Credicorp Ltd.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.67 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Credicorp Ltd. revenue of about $25.63B for fiscal 2026, with EPS near $101.13. The estimate reflects 5 contributing analysts.

Net sellingInsider Activity

Over the past six months, Credicorp Ltd. insiders filed 2 SEC Form 4 transactions — 2 sales and 0 purchases. On net that is roughly 5K shares disposed (about $1.5M), a signal worth weighing alongside the fundamentals.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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