How Investors Are Reacting To Credicorp (BAP) Unveiling its Digital Expansion and Yape Growth Ambitions

• Earlier this week, Credicorp held its 2025 Investor Day in New York, celebrating 30 years on the NYSE and unveiling a roadmap focused on transformation, innovation, and sustainable growth.
• A standout insight is Credicorp’s ambitious plan to triple payment volumes on its digital platform Yape while expanding integrated financial services across lending, insurance, and remittances.
• We'll explore how Credicorp’s focus on digital ecosystem expansion, particularly through Yape, could reshape its investment narrative moving forward.

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Credicorp Investment Narrative Recap

To be a Credicorp shareholder, one needs to believe in its ability to integrate digital innovation, financial inclusion, and operational efficiency across Latin America’s banking sector, while managing exposure to Peru’s economic and regulatory context. The 2025 Investor Day reinforced digital growth as a short-term catalyst, particularly scaling Yape, but the pace and risk of expanding in higher-yield lending could pressure asset quality if not managed carefully. This news does not materially reduce the ongoing risk tied to non-performing loans, which remains the core challenge for Credicorp right now.

Among recent announcements, management’s reaffirmed commitment to achieve a 19.5 percent sustainable return on equity (ROE) and a cost-to-income ratio near 42 percent in three to four years stands out. These targets, coupled with expanded digital initiatives, are directly linked to Credicorp’s investment thesis and the need to balance growth with prudent risk controls as its lending book broadens. But investors tracking the company should note that while growth ambitions have accelerated, the underlying risk profile could be shifting for reasons that deserve close attention...

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 an 11.0% yearly revenue growth and an increase of PEN1.8 billion in earnings from the current level of PEN6.3 billion.

Uncover how Credicorp's forecasts yield a $268.85 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community set fair values for Credicorp between S/213.23 and S/448.20. With digital lending identified as a growth catalyst, your outlook on risk and opportunity could differ greatly from these community viewpoints.

Explore 4 other fair value estimates on Credicorp - why the stock might be worth as much as 76% 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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