How Credicorp's (BAP) Profit Beat and Digital Targets Have Changed Its Investment Story

• Credicorp Ltd. recently reported third-quarter 2025 results, posting net interest income of S/3.69 billion and net income of S/1.74 billion, both higher than a year earlier, along with an increase in earnings per share from continuing operations.
• An important insight is that the company reaffirmed its medium-term profitability and digital transformation targets, highlighting progress amid challenging political conditions in Peru.
• We'll explore how Credicorp's reaffirmed medium-term ROE and efficiency targets could influence its current investment outlook and narrative.

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Credicorp Investment Narrative Recap

To be a Credicorp shareholder, you need confidence in Peru’s economic stability, the company's execution of digital transformation, and its ability to navigate political disruption. The latest earnings report confirmed rising profits and a reaffirmation of medium-term targets, which supports management’s long-term growth story. This news does not materially shift near-term catalysts, like expanding digital financial services, or reduce the main risk, which remains the company’s exposure to ongoing political and regulatory changes in Peru.

Among recent developments, the resolution of the S/1.6 billion tax dispute with SUNAT is especially relevant, as it removes an overhang that could have affected both cash flow and investor sentiment. With that uncertainty addressed, Credicorp appears better positioned to pursue its digital and efficiency goals, but fundamental exposure to local politics persists.

Yet, despite these promising results, investors should stay alert to the continued risks posed by regulatory uncertainty in Peru, particularly as...

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

Credicorp's narrative projects PEN27.2 billion revenue and PEN8.1 billion 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 10% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community fair value estimates for Credicorp span S/213.23 to S/453.35 per share, illustrating the wide range of individual investor expectations. While projections for digital growth remain optimistic, risks tied to political and regulatory developments still shape sentiment, reminding you to consider multiple perspectives when weighing Credicorp’s potential.

Explore 4 other fair value estimates on Credicorp - why the stock might be worth as much as 83% 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.

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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.

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