Sign In
Subscribe

Peru’s Credicorp posts above-expected profit on banking, insurance boost

MEXICO CITY, Aug 10 (Reuters) – Credicorp, one of Peru’s biggest financial holding companies, posted a 22.6% year-on-year rise in its second-quarter net profit on Thursday, pushed up by its banking and insurance divisions, beating analysts’ forecasts.

The South American lender, which offers universal banking, microfinance, insurance, pensions and investment banking services, recorded a net profit of 1.4 billion soles ($383 million)

Refinitiv analysts had forecast it at 1.3 billion soles.

The company’s return on equity (ROE) landed at 18.6% for the quarter, up over a percentage point from the same period last year.

Structural loans were also up 5.5% year-on-year, and net interest income rose 21.5%; fueled by higher benchmark interest rates.

Nonetheless, the financial group said its strong results came despite difficult macro conditions.

“The first half of the year was tougher than expected due to social and climate events which led GDP to stagnate in the first half of 2023,” Chief Executive Gianfranco Ferrari said in a statement.

Indeed, the company saw a 3.5% rise in non-performing loans in the period.

Peru’s economy, one of the region’s fastest growing, has suffered from waves of protests that began after the ouster of former President Pedro Castillo late last year.

Looking forward, the company said it was “closely monitoring” the potential impact of the El Nino weather phenomenon, which the country’s central bank has also warned is an area of potential economic risk.

Still, the company maintained its 2023 guidance on ROE, at around 17.5%. Net interest margin expectations also remained unchanged.

Credicorp’s digital wallet app Yape is also set to reach break-even at some point in 2024, it said. ($1 = 3.6503 soles) (Reporting by Valentine Hilaire and Isabel Woodford; Editing by Sarah Morland and Stephen Coates)

Image by: Credicorp

Top Stories

Related Articles

Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, Coeus Intelligence will share the Data with our associate companies (including event and content sponsors) to promote their products and services. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

            COVID-19
            Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

            Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

            The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

            Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

            Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

            Request Nomination Pack

            Error: Contact form not found.