The following is a summary of the Credicorp Ltd. (BAP) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Credicorp Ltd. reported a record high bottom line of PEN1,523 million in Q3 2024.

• The return on equity (ROE) was strong at 18.5%, driven by universal banking and insurance sectors.

• Net interest margin (NIM) improved, showing a disciplined interest rate management alongside a leading low-cost funding position, enabling reduced provision levels.

• Dividend payout ratio stands at a notable 75.3% for the year, following a special dividend of PEN11 per share.

• The acquisition of the remaining 50% stake in a joint venture has fortified Credicorp's presence in the insurance and healthcare sectors, acting as a catalyst for future growth.

Business Progress:

• Firm advancements in digital and innovative sectors, notably with the provisional approval for Tenpo Bank Chile, expected to become the first digital bank operating in Chile by 2025.

• Continuous efforts in enhancing digital capabilities and customer service, positioning Credicorp as a leader in financial innovation.

• Mibanco's performance has shown significant improvement, with operational measures enhancing loan origination, monitoring, and collection processes.

• Yape has reached 13 million active users, projecting a strong potential for revenue growth and transactional activity increase.

Opportunities:

• Regulatory reform in Peru's pension system is viewed as a chance to increase the national savings pool and funnel it into productive investments, possibly boosting long-term economic stability and growth.

• The creation of Tenpo Bank reflects strategic expansion into digital banking, aligning with wider digital transformation in financial services and increasing market presence in Chile.

• Continued growth and dominance of Credicorp's digital wallet, Yape, signify potential for increased transaction revenue and customer engagement.

Risks:

• Geopolitical tensions in the Middle East and forthcoming U.S. election results could introduce volatility affecting regional economic conditions and possibly Credicorp's operations.

• The macroeconomic environment, while currently stable, presents inherent risks that could influence business confidence and loan demand, directly affecting wholesale and retail banking sectors.

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