Peru's Credicorp upbeat on 2025 after net profit jump

Credicorp BAP, one of Peru's largest financial holding companies, said on Monday it expected a rosier 2025 as it posted a 34% rise in fourth-quarter net profit, slightly below analysts' forecasts.

Credicorp posted a net profit of 1.13 billion soles ($304.6 million) for the last three months of 2024, up 34% from the same period a year earlier but below the 1.29 billion soles predicted by analysts polled by LSEG.

For 2025, the company predicted a return on equity (ROE) of around 17.5%, driven by growth in its loan portfolio, particularly in the retail segement, a resilient net interest margin and lower cost of risk.

ROE for the fourth quarter stood at 13.3%, at 16.5% through all 2024. Net interest income, the difference between what banks earn on loans and dole out to pay down liabilities, increased 8.4% year-on-year.

"We closed 2024 on a high note, delivering record income for the year despite a challenging environment, in line with our decoupling strategy," Chief Financial Officer Alejandro Perez said in a statement.

"More importantly, we are entering 2025 with strong momentum, expecting an even better year ahead."

In a fireside chat with J.P. Morgan analysts last month, Credicorp executives predicted a rosier macroeconomic situation, faster loan growth and better asset quality in 2025.

Shares in Credicorp are up around 4% this year.

($1 = 3.7100 soles)