Q2 2024 Credicorp Ltd Earnings Call Transcript
Key Points
- Credicorp Ltd (BAP) reported a solid ROE of 16.2%, driven by universal banking, insurance, and investment management and advisory.
- The company achieved resumed loan growth and maintained a resilient risk-adjusted NIM.
- Credicorp Ltd (BAP) has a strong balance sheet and maintained a robust solvency position.
- Significant progress in strategic initiatives, particularly in digital and innovation efforts, has led to increased digital customers and transactions.
- Yape, Credicorp's digital payment platform, reached breakeven ahead of expectations, showing strong income growth and diversification.
- The microfinance sector in Peru, particularly Mibanco, is facing systemic issues with high delinquencies and cost of risk at the highest level since 2008.
- ROE for Mibanco fell short of expectations, and the company is not yet comfortable with the risk assessment of its portfolio.
- The cost of risk rose to 3%, driven by a weakening of payment capacities in SME-Pyme and a deterioration in payment performance in credit cards.
- Non-performing loans (NPL) ratio increased to 6%, with delinquency rising mainly in consumer, mortgage, and credit card loans.
- Loan growth guidance for 2024 was revised down to 1% to 3%, reflecting a cautious approach to originations in retail banking and microfinance segments.
Good morning, everyone. I would like to welcome all of you to the Credicorp Limited second-quarter 2024 conference call. A slide presentation will accompany today's webcast, which is available in the Investors section of Credicorp's website. Today's conference call is being recorded. (Operator Instructions)
Now it is my pleasure to turn the conference over to Credicorp's IRO, Milagros Cigüeñas. You may begin.
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Thank you, and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer; and Alejandro Perez-Reyes, our Chief Financial Officer. Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Cesar Rios, Chief Risk Officer; Diego Cavero, Head of Universal Banking; Cesar Rivera, Head of Insurance and Pensions; Carlos Sotelo, Mibanco's Chief Financial Officer.
Before we proceed, I would like to make the following Safe Harbor statement. Today's call will contain forward-looking statements,
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