Credicorp: 1Q26 Conference Call Highlights

Research evidence excerpt

Credicorp: 1Q26 Conference Call Highlights

UpdateMunderwriting, repricing, stronger collections and improved segment-level risk

behavior. Temporary factors included high profit-sharing payments from the mining

sector, pension-fund withdrawals that helped repayments, and wholesale provision

releases. Wholesale cost of risk at BCP is usually around 10-20 bps, compared with

50 bps in 4Q25 and negative 10 bps in 1Q26, so part of the benefit should not be

extrapolated. As retail, microfinance and Yape lending grow faster, cost of risk

should normalize upward, but higher spreads should support risk-adjusted NIM.

Funding Cost. The deposit franchise remains a structural advantage, not just a

cyclical benefit from lower rates. Roughly half of the recent deposit growth came

from pension-fund withdrawals, which should fade during the year, while the other

half came from more structural factors: clients using BCP as their main bank,

stronger transactional capabilities and an economy that is gradually becoming less

cash-driven. This should help sustain a favorable funding mix even after pension-

related liquidity disappears. The low-cost deposit base gives Credicorp room to

protect margins while the loan book shifts toward faster-growing retail and

microfinance segments.

Expenses. Expense growth is still being framed as investment-led, with spending

concentrated on digital capabilities, cloud infrastructure, IT services, risk analytics,

commercial projects and the innovation portfolio. Yape remains the main driver, but

the investment phase is not expected to undermine operating leverage. Some Yape-

related expenses were seasonal or event-driven, including branding activity around

the elections, while other investments are structural, especially in lending,