Credicorp’s (BAP) Rising Net Interest Income Sparks Questions About Long-Term Profitability Drivers

• Credicorp Ltd. recently reported its third quarter 2025 results, with net interest income rising to PEN3.69 billion and net income reaching PEN1.74 billion, both up from the same period last year.
• This performance highlights ongoing strength in Credicorp's core financial operations and may signal continued resilience amidst evolving market and regulatory conditions.
• We'll explore how the growth in net interest income and net income informs Credicorp's overall investment outlook.

Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

Credicorp Investment Narrative Recap

To be a shareholder in Credicorp, you need to believe in the continued expansion and modernization of financial services in Peru, alongside resilience to local political and regulatory volatility. The latest results show further growth in core earnings, but the biggest short-term catalyst, sustained demand for digital banking, remains steady, while the biggest risk from ongoing regulatory disputes, including the tax issue with SUNAT, has not materially changed with this update.

The August 14, 2025, announcement that several tax assessments totaling S/1.6 billion were canceled by SUNAT is especially relevant, given regulatory risk is a constant theme around Credicorp. The short-term catalyst of robust digital lending remains compelling, but any resurgence of compliance or tax-related challenges could quickly impact cash flow or disrupt the company’s ongoing dividend policy.

However, investors should also be mindful that Credicorp’s high exposure to the Peruvian market means...

Read the full narrative on Credicorp (it's free!)

Credicorp's narrative projects PEN27.2 billion in revenue and PEN8.1 billion in earnings by 2028. This requires 11.0% yearly revenue growth and a PEN1.8 billion earnings increase from the current PEN6.3 billion.

Uncover how Credicorp's forecasts yield a $271.65 fair value, a 8% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community posted four fair value estimates for Credicorp, ranging from US$213.23 to US$445.12. While outlooks differ widely, ongoing regulatory scrutiny remains a core factor shaping the company’s future performance, compare these views to your own and explore several alternative perspectives.

Explore 4 other fair value estimates on Credicorp - why the stock might be worth as much as 77% more than the current price!

Build Your Own Credicorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Credicorp research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Credicorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Credicorp's overall financial health at a glance.

Interested In Other Possibilities?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• Find companies with promising cash flow potential yet trading below their fair value.
• These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com