Banco de Crédito del Perú (CREDITC1) Q3 2024 earnings summary

Executive summary

• BCP remains the market leader in Peru with top positions in direct loans, deposits, and total assets, doubling its size in the last decade.

• Net income for 3Q24 reached PEN 1,501 million, up 33.8% year-over-year, with strong growth in financial margin and fee income.

• Net profit for the nine months ended September 30, 2024 reached S/ 4,058.8 million, up from S/ 3,756.9 million in the same period of 2023, driven by higher financial and non-financial income.

• Total assets increased to S/ 202,965.2 million as of September 30, 2024, compared to S/ 191,858.3 million at December 31, 2023.

• The bank maintains robust capital ratios and high credit ratings from both local and international agencies.

Financial highlights

• Gross financial margin increased 10.9% year-over-year in 3Q24, while provision for loan losses dropped 20.4%.

• Net financial margin reached S/ 7,165.7 million, compared to S/ 6,642.5 million in the prior year period.

• Net interest margin improved to 6.94% in 3Q24, and efficiency ratio stood at 39.62%.

• ROAE reached 25.44% and ROAA 2.98% in 3Q24, both showing significant improvement year-over-year.

• Earnings per share for the period were S/ 0.3121, up from S/ 0.2888 year-over-year.

Outlook and guidance

• Peru's GDP is forecasted to grow 3.0% in 2024 and 2.8% in 2025, with inflation expected to remain within the 1–3% target range.

• BCP is positioned to benefit from Peru's dynamic economic outlook and strong macroeconomic buffers.

• The bank continues to comply with regulatory capital requirements and does not expect significant impact from new Basel III-related regulations.

• Management and the Board approved the interim financial statements on October 23, 2024, with no significant post-balance sheet events identified.