Key Stats
- Current Price: $316 (May 15, 2026)
- Q1 2026 Net Income: PEN 2.06B (+16.1% YoY)
- Q1 2026 Net Interest Income Growth: +10.9% YoY
- Q1 2026 ROE: 21% (record quarter)
- Q1 2026 Core Income Growth: +13% YoY
- Full-Year 2026 ROE Guidance: ~20% (expected on the upper side)
- Full-Year 2026 Loan Growth Guidance: ~9% (quarter-end balances) / ~10.5% FX-neutral
- Dividend Declared: PEN 50 per share (record high ordinary dividend)
- TIKR Model Price Target: $528
- Implied Upside: ~67% from current price
Credicorp Stock Posts Record Net Income as ROE Tops 21% in Q1 2026
Credicorp stock (BAP) delivered record-high net income in Q1 2026, with net profit rising 16.1% year-over-year to PEN 2.06B and ROE of 21.1%, beating the company’s own full-year guidance range.
Net interest income grew 10.9%, driven by a PEN 1.13B result in Q1 2026 as loan portfolio expansion and a declining funding cost widened the spread.
The headline driver was BCP, the group’s core banking unit, where loan growth reached 7.3% in quarter-end balances (9.1% in FX-neutral terms), risk-adjusted NIM hit a record 5.5%, and provisions fell 35.1% year-over-year.
Mibanco, the group’s microfinance arm, also contributed meaningfully, with loan growth of 12.4% YoY, an NPL ratio falling to an all-time low of 4.9%, and ROE of 21.7%.
The group’s NPL ratio declined to 4.3% at quarter end, below pre-2023 recession levels, with the NPL coverage ratio rising to 113.8%.
Core income grew 13.3% YoY, with net interest income, fee income, and FX gains all posting double-digit growth, according to CFO Alejandro Perez-Reyes on the Q1 2026 earnings call.
Fee income rose 15.6%, driven by transactional activity at Yape and BCP, while FX gains rose 30.6% on higher volumes.
Yape, the group’s digital payments platform, now reaches approximately 82% of Peru’s economically active population with 16.4 million monthly active users, and revenue per MAU increased 65% YoY to PEN 10.3, according to Perez-Reyes.
Yape lending revenue grew 3.6x year-over-year, with more than 5.7 million loans disbursed in the quarter, and the platform represented 17% of group fee income and 8% of group risk-adjusted revenues.
Grupo Pacifico posted an ROE of 18.9%, with organic net income growing 11% YoY driven by the Life business; including the full consolidation of Pacifico Salud, consolidated net income rose 19% YoY.
Management reaffirmed full-year ROE guidance at approximately 19.5% but stated expectations are skewed toward the upper side, given Q1 strength and positive economic momentum.
The group declared a record ordinary dividend of PEN 50 per share, applicable to 94,382,317 shares, with a payout scheduled for June 12, 2026.
CEO Gianfranco Ferrari flagged that Credicorp’s decoupling strategy is now organized around a newly formed neobank unit, effective April 1, which consolidates Yape Peru, Yape Bolivia, iO, and Tenpo in Chile under a single umbrella led by Raimundo Morales.
Operating expenses grew 13.1% YoY, driven by IT and digital investment at BCP and Yape, with Yape-related disruptive expenses rising 40% and representing 84% of total disruptive expenses for the quarter; the efficiency ratio held at 45.8%, within guidance.
Peru’s political environment introduces near-term uncertainty, with a presidential runoff expected between Fujimori and Sanchez; management stated the Senate’s composition is the more decisive factor for macroeconomic continuity, and described Peru’s institutional framework as an effective constraint on abrupt policy shifts.
Credicorp Stock: What the Income Statement Shows
The multi-quarter income statement tells a consistent NII recovery story, with net interest income climbing from PEN 900M in Q2 2024 to PEN 1.13B in Q1 2026, a trajectory supported by declining funding costs and a widening loan base.
Total revenues (net of provisions) rose from PEN 1.12B in Q2 2024 to PEN 1.65B in Q1 2026, with YoY growth of 19.7% in the most recent quarter.
EBT excluding unusual items reached PEN 830M in Q1 2026, up 21.6% YoY, building on a 22.9% YoY gain in Q4 2025 and sustaining the earnings acceleration that began in mid-2024.
Provision for loan losses fell to PEN 140M in Q1 2026, the lowest in the trailing eight quarters, reflecting improved payment performance across BCP’s retail book and effective risk management at Mibanco.
The combination of rising core income and contracting provisions is what pushed EBT growth into the low 20s on a YoY basis, even as total non-interest expenses remained elevated from ongoing digital investment.
Valuation Model Take and Scenario Breakdown
The TIKR model prices Credicorp stock at a target of $527.72, implying approximately 67% upside from the May 15 close of $316.31, assuming a mid-case revenue CAGR of 10.3% and a net income margin of 31.0% realized by December 31, 2030.
The mid-case scenario implies a total return of 173% by December 2034 at an IRR of approximately 12.3% annualized.
With Q1 ROE at 21.1% and net income at record levels, this print does not weaken the investment case; it extends the track record supporting the model’s margin assumptions.
The question is no longer whether Credicorp stock can sustain premium returns in a stable environment, it is whether the macro and political overlay clips execution before the full upside materializes.
The investment argument for Credicorp stock hinges on whether Peru’s economic and institutional stability holds long enough for the Yape monetization cycle and retail credit expansion to compound into the return profile the model requires.
What Has to Go Right
- BCP’s cost of risk must normalize to the lower end of guidance as retail origination accelerates; Q1’s 0.8% level at BCP shows the risk infrastructure is performing, not just benefiting from one-off pension fund payments.
- Yape’s revenue per MAU, currently at PEN 10.3 and growing 65% YoY, must continue outpacing expenses per MAU (PEN 5.9, growing 26%) to demonstrate the operating leverage that justifies the platform’s 17% share of group fee income.
- NIM guidance of 6.4% to 6.7% must hold as retail origination shifts the portfolio mix; Q1 NIM of 6.6% is already at the top of that band, and management confirmed risk-adjusted NIM is expected to remain within guidance.
- Peru’s Senate must act as the institutional counterweight management described in the event that the more interventionist presidential candidate wins; the Senate’s composition is the variable management pointed to as the decisive factor, not the presidency itself.
What Could Still Go Wrong
- The three one-off cost-of-risk tailwinds BCP cited in Q1 (mining profit sharing, pension fund repayments, wholesale provision reversals) are explicitly non-recurring; as retail origination accelerates into higher-yield segments, the cost of risk will rise, and the pace of that increase determines how much of Q1’s record print survives into full-year results.
- Yape’s 40% expense growth and the neobank unit consolidation (Yape Peru, Yape Bolivia, iO, Tenpo) add organizational complexity at the same time that the Central Bank is rolling out a UPI-style interoperable system that could intensify payment competition.
- A strong or super El Nino event, while not currently the base case, could subtract approximately 1% from Peru’s GDP based on historical precedents cited by Chief Risk Officer Cesar Rios; against a 3.5% GDP growth forecast that is already skewed to the downside at 3.2%, that is a material buffer reduction.
- Insurance underwriting results are expected to drop high single digits in 2026 due to the absence of extraordinary D&S reversals that boosted 2025, creating a headwind to consolidated core income that the banking and digital segments must absorb.
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