Credicorp - Q1 FY2026 Earnings Analysis

Performance Highlights

Credicorp reported record Q1 2026 net income attributable to shareholders of S/2,063 million, rising 16.1% YoY and 30.0% QoQ, driving ROE to an all-time high of 21.1% and comfortably surpassing consensus expectations. Net Interest Income grew 10.9% YoY to S/3,963 million as NIM expanded 36 basis points to 6.58%, while the Risk-Adjusted NIM advanced 57 basis points YoY to 5.8%, reflecting a favorable funding mix shift and continued asset quality improvement.

The single most important operating driver was the simultaneous acceleration in loan growth and compression in credit costs: total loans rose 8.2% YoY to S/152.8 billion while Cost of Risk fell 35 basis points YoY to just 1.3%, its lowest level since 2023. BCP Stand-alone led volume with 7.3% YoY loan growth and an ROE of 30.5%, Mibanco contributed 12.4% YoY loan expansion with ROE improving to 21.7%, and the Innovation Portfolio — led by Yape's 16.4 million MAUs and revenue per MAU of S/10.3 — reached 9.0% of risk-adjusted revenues, approaching the 10% year-end target.

Management Outlook and Forward Catalysts

Management reaffirmed full-year 2026 guidance in its entirety, targeting loan growth of approximately 8.5%, NIM in the 6.4%–6.7% range, Cost of Risk of 1.7%–2.1%, an Efficiency Ratio of 45.0%–46.5%, and ROE of approximately 19.5%, signaling confidence that Q1's record profitability will normalize modestly as retail origination accelerates and provisioning normalizes. The guidance framing positions Credicorp in a growth-investment phase, balancing commercial momentum with disciplined underwriting as Peru's domestic demand sustains above-5% growth for a sixth consecutive quarter.

The central investor debate heading into Q2 is whether the Q1 Cost of Risk of 1.3% — well below the full-year guidance floor of 1.7% — reflects durable structural improvement or a temporarily favorable provisioning environment driven by one-off wholesale reversals and pension-withdrawal-boosted retail repayments. Bulls will focus on Yape's monetization trajectory and the low-cost deposit base reaching 63.9% of funding, while bears will monitor whether retail origination acceleration reintroduces credit losses and whether Peru's political backdrop disrupts the BCRP's policy stability anchor.