Latest news with #Yape
Yahoo
2 days ago
- Business
- Yahoo
Credicorp Ltd (BAP) Q2 2025 Earnings Call Highlights: Strong ROE and Digital Growth Amid Legal ...
ROE: 20.7% for Q2, with a full-year expectation of approximately 19%. Risk-Adjusted NIM: Record 5.4% for the quarter. Efficiency Ratio: 44.2% for the quarter. Loan Growth: Underlying growth of 2.6% for the quarter, excluding currency effects. NPL Ratio: 5% for the quarter. Cost of Risk: 1.6% for the quarter. Net Interest Income: Increased by 4.2% year-over-year. Fee Income: Increased by 8.2% year-over-year. Insurance Underwriting Results: Grew by 11.2% year-over-year. Yape Users: Nearly 15 million monthly active users. Yape Revenue Contribution: 5.5% of Credicorp's risk-adjusted revenue. Grupo Pacifico ROE: 21.1% for the quarter. Investment Management ROE: 15.5% for the quarter. GDP Growth Expectation: Around 3% for the year. Loan Book Growth Expectation: Around 6.5% year-over-year. Warning! GuruFocus has detected 4 Warning Signs with SDOT. Release Date: August 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Credicorp Ltd (NYSE:BAP) reported a strong ROE of 20.7% for Q2 2025, reflecting solid operating performance and disciplined risk management. The company is benefiting from Peru's favorable macroeconomic environment, with GDP expected to grow by 3.2% and domestic demand by 4.5% this year. Credicorp Ltd (NYSE:BAP) has successfully diversified its business model, with fee-based and transactional income growing, reinforcing its platform. The digital platform Yape continues to scale, now serving nearly 15 million monthly active users, contributing significantly to fee income. Asset quality trends remain favorable, with improved credit dynamics and a record risk-adjusted NIM of 5.4%. Negative Points Credicorp Ltd (NYSE:BAP) is facing a legal challenge with SUNAT, requiring a payment of approximately PEN1.6 billion in alleged unpaid income tax, impacting cash flow. The efficiency ratio reflects upfront investments in scaling digital capabilities, which may pressure short-term profitability. Loan growth was impacted by the revaluation of Bolivia's balance sheet and currency fluctuations, with a reported 4.1% drop in quarter-end balances. The cost of risk is expected to rise in the second half of the year due to stronger retail origination, potentially affecting profitability. Despite strong results, the company will not issue extraordinary dividends this year due to the cash impact of the SUNAT payment. Q & A Highlights Q: Can you elaborate on the improvement in cost of risk and the strategy for retail acceleration in the second half? A: The improvement in cost of risk is due to measures taken last year to ensure portfolios are within risk appetite, resulting in a very low cost of risk in the first half of the year. We are now originating higher-yielding, higher-risk portfolios successfully. The strategy is to continue this trend, which should reflect in the second half and continue in the following years. We manage our portfolio based on risk-adjusted NIM, not just cost of risk. Q: What is your long-term vision for the physical branch network given the digital transformation? A: We have reduced our branch network from 450 to 300 over the past few years, shifting the role of branches from transactional to more educational and commercial. While the bulk of the reduction is done, we will continue to adapt as the world changes. Q: How do you see the cost of risk trending long-term, and what are your expectations for loan growth this year? A: We expect the cost of risk to increase as we originate higher-risk portfolios, but this will also increase profitability. For loan growth, we expect a 6.5% increase year-over-year, driven by retail segments, particularly in Mibanco and BCP with mortgages and consumer credit. Q: Can you provide insights into Yape's contribution to Credicorp's revenue and its future potential? A: Yape is expected to become the second-largest line of business for Credicorp in the next 3 to 5 years, primarily due to its lending business in retail and SME segments. Currently, Yape's lending is small but growing, with a focus on learning to lend effectively. Q: What impact does the SUNAT payment have on dividends, and what is the outlook for extraordinary dividends? A: The PEN1.6 billion payment to SUNAT affects our cash position, so we won't issue an extraordinary dividend this year. However, this does not change our expectations for next year's ordinary and extraordinary dividends. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Finextra
10-07-2025
- Business
- Finextra
Ebanx integrates with Yape in Peru
Ebanx announced today its direct integration with Yape, Peru's superapp, for cross-border merchants of the digital economy. Yape supports both recurring and one-click and on-file payments through a simple user enrollment process. 0 Users will be able to pay for their purchases on global e-commerce websites with either their wallet balance or a linked card. In 2024, Yape captured the largest share of the volume transacted online with a digital wallet in the country, according to data from Payments and Commerce Market Intelligence (PCMI). EBANX's study Beyond Borders 2025 reveals that Peru's e-commerce market is expected to reach USD 60 billion by 2027, after growing 20% per year. 'With over 14 million active Peruvian users, Yape empowers millions of consumers with reliable daily transactions. This direct integration with EBANX marks a significant step in expanding our reach to global merchants, allowing them to tap into the vast potential of the Peruvian market,' says Claudia Silva, Head of Payments at Yape. Digital wallets have become a crucial part of the payment ecosystem in Peru. In 2024, wallets represented 10% of the country's total digital commerce transactions, and their share is expected to grow at an annual rate of 17% by 2027, according to PCMI. 'Yape is a key driver of this growth, reshaping the financial landscape and enabling financial inclusion, particularly for those without access to traditional banking,' Silvia points out. According to Beyond Borders 2025, digital wallets are increasingly becoming a preferred option for recurring transactions, thanks to innovative features that help improve approval rates. According to Yape's internal data, the company provides an impressive 93% approval rate on transactions, positioning it as an effective payment solution for businesses looking to thrive in Peru's rapidly growing digital economy. 'Through partnership with Yape, EBANX enables merchants to access a seamless, secure, and high-conversion payment solution that drives immediate results, for one-time purchases as well as for subscription-based services and recurring payments," explains Juliana Etcheverry, Director of LatAm Country Growth - South Cone at EBANX. "This partnership goes beyond payments; it's about fostering scalable, long-term growth for merchants in a rapidly evolving market," Etcheverry adds.
FF News
10-07-2025
- Business
- FF News
EBANX Offers First Direct Integration for Cross-Border Merchants with Peruvian Wallet Yape
EBANX announced today its direct integration with Yape, Peru's superapp, for cross-border merchants of the digital economy. Yape supports both recurring and one-click and on-file payments through a simple user enrollment process. Users will be able to pay for their purchases on global e-commerce websites with either their wallet balance or a linked card. In 2024, Yape captured the largest share of the volume transacted online with a digital wallet in the country, according to data from Payments and Commerce Market Intelligence (PCMI). EBANX's study Beyond Borders 2025 reveals that Peru's e-commerce market is expected to reach USD 60 billion by 2027, after growing 20% per year. 'With over 14 million active Peruvian users, Yape empowers millions of consumers with reliable daily transactions. This direct integration with EBANX marks a significant step in expanding our reach to global merchants, allowing them to tap into the vast potential of the Peruvian market,' says Claudia Silva, Head of Payments at Yape. Digital wallets have become a crucial part of the payment ecosystem in Peru. In 2024, wallets represented 10% of the country's total digital commerce transactions, and their share is expected to grow at an annual rate of 17% by 2027, according to PCMI. 'Yape is a key driver of this growth, reshaping the financial landscape and enabling financial inclusion, particularly for those without access to traditional banking,' Silvia points out. According to Beyond Borders 2025, digital wallets are increasingly becoming a preferred option for recurring transactions, thanks to innovative features that help improve approval rates. According to Yape's internal data, the company provides an impressive 93% approval rate on transactions, positioning it as an effective payment solution for businesses looking to thrive in Peru's rapidly growing digital economy. 'Through partnership with Yape, EBANX enables merchants to access a seamless, secure, and high-conversion payment solution that drives immediate results, for one-time purchases as well as for subscription-based services and recurring payments,' explains Juliana Etcheverry, Director of LatAm Country Growth – South Cone at EBANX. 'This partnership goes beyond payments; it's about fostering scalable, long-term growth for merchants in a rapidly evolving market,' Etcheverry adds. Companies In This Post EBANX Yape
Yahoo
17-05-2025
- Business
- Yahoo
Credicorp Ltd (BAP) Q1 2025 Earnings Call Highlights: Strong ROE and Digital Growth Amid ...
Revenue: Not explicitly mentioned in the transcript. Return on Equity (ROE): 20.3% including extraordinary gains; 18.4% excluding non-recurring gains. Loan Growth: 1.5% increase in average daily balances, driven by short-term loans in wholesale banking. Net Interest Margin (NIM): Resilient at 6.2% despite a contraction in asset yields. Non-Performing Loan (NPL) Ratio: 5.1% for Credicorp; 6.4% for Mibanco. Cost of Risk: 1.6%, reflecting improved portfolio management and payment performance. Efficiency Ratio: 45.7%, within guidance range. Dividend Payout: PEN40 per share. Fee Income Growth: 16% increase, driven by transactional activity at Yape and BCP. Insurance Underwriting Result: 17.9% increase, reflecting a stronger reinsurance result in the P&C business. Asset Quality: Improved with NPL volumes contracting and a coverage ratio of 107.4%. Yape User Growth: Over 0.5 million new active users, surpassing 14 million total users. Mibanco NIM: 13.9%, with a risk-adjusted NIM of 10.1%. Grupo Pacifico Profitability: Impacted by credit downgrades, standing at 19.3%. Warning! GuruFocus has detected 7 Warning Signs with SOBO. Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Credicorp Ltd (NYSE:BAP) reported a high ROE of 20.3% for the first quarter of 2025, exceeding expectations. The Peruvian economy is rebounding faster than expected, with a GDP growth of 3.9% in Q1 2025, supporting Credicorp's growth. Loan growth resumed, particularly in wholesale banking and short-term loans, with expectations for retail segments and microfinance to accelerate in the coming quarters. Credicorp's risk-adjusted NIM improved year over year, driven by lower provisioning and enhanced asset quality. The company has made strategic investments in digital capabilities and modernized core systems, contributing to diversified income streams and scalable growth. Global uncertainty, including trade tensions and potential recession risks, poses challenges to Peru's economic outlook and Credicorp's performance. The revaluation of Bolivia's balance sheet led to a contraction of 2% in Credicorp's total assets. Despite strong economic growth, loan growth remains relatively muted, with a lag in recovery following previous economic cycles. Interest rates are declining, which could impact net interest margins if not offset by other factors. Political uncertainty in Peru, including upcoming elections, could affect market sentiment and economic stability. Q: Given the improving environment and strong first quarter ROE, what is preventing Credicorp from updating its guidance? Is it due to political uncertainty or risks of lower commodity prices? Could there be a revision by the second quarter? A: Alejandro Perez-Reyes, CFO: While we expect to be above the current guidance of around 17.5% ROE, global uncertainties, particularly trade tensions and potential impacts on global growth, keep us cautious. We are not expecting changes in our views for Peru this year, but we will consider revising guidance if stability continues and clarity improves. Q: The cost of risk was subdued this quarter. What are the drivers behind this, and do you expect it to continue? A: Unidentified Company Representative: The reduction in the cost of risk is due to a positive macroeconomic environment, specific events, and cumulative measures in the origination process since 2023. While we expect to originate higher volumes in riskier segments, the net effect on risk-adjusted NIM should be positive. Q: Loan growth remains muted despite a strong economy. What will drive acceleration in loan growth? A: Alejandro Perez-Reyes, CFO: Loan growth typically lags in recovery cycles. High liquidity has led to prepayments, but recent months have shown strong loan sales. We expect to meet our guidance of 3.5% growth in average daily balances and over 6% year-over-year growth as the portfolio builds up. Q: What is Credicorp's sensitivity to interest rate changes, and why is there confidence in the political environment despite recent changes? A: Alejandro Perez-Reyes, CFO: A 100 basis point shift would affect NIM by 17 basis points, mainly from the dollar portfolio. Gianfranco Ferrari, CEO: Despite political noise, Peru's macro figures are solid, and we expect strong performance in the coming quarters. Q: Regarding Yape, what are the expectations for lending growth, and which areas are you focusing on? A: Francesca Raffo, Chief Innovation Officer: Our focus is currently on individual lending, with plans to expand into SME lending. Multi-installment loans are becoming more relevant, and we expect outstanding balances to be mainly multi-installment by year-end. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
12-02-2025
- Business
- Yahoo
Credicorp Ltd (BAP) Q4 2024 Earnings Call Highlights: Record Profitability and Strategic Growth ...
Record Profitability: PEN5.5 billion for the full year 2024. Return on Equity (ROE): 16.5%, adjusted to 17.2% excluding one-off charges. Loan Growth: 0.7% increase in average daily balances and 2.2% in quarter-end balances. Net Interest Margin (NIM): 6.3%, with a risk-adjusted NIM of 4.9% for BCP. Non-Performing Loan (NPL) Ratio: Decreased by 60 basis points to 5.3%. Cost of Risk: Reduced to 2.1%. Net Interest Income: Increased by 1.1%. Efficiency Ratio: 45.8% for the full year 2024. Yape Active Users: Nearly 14 million, with significant transaction volume growth. Grupo Pacifico ROE: 23.7% for the full year 2024. Guidance for 2025: Expected GDP growth of 3%, loan growth of 3.5% in average daily balances, and ROE around 17.5%. Warning! GuruFocus has detected 7 Warning Signs with UTL. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Credicorp Ltd (NYSE:BAP) delivered record profitability of PEN5.5 billion and an ROE of 16.5% for 2024, aligning with guidance when excluding one-off charges. The company experienced robust operational performance in Q4 2024, with improved cost of risk and increased lending at BCP and Mibanco. Credicorp Ltd (NYSE:BAP) benefited from Peru's economic recovery, with GDP expanding by over 3% in 2024 and inflation falling to 2.2%. The company achieved significant asset quality improvement, allowing for a more proactive lending approach, particularly in the Retail segment. Yape, Credicorp's digital payments platform, reached profitability in 2024 with nearly 14 million active users, doubling its transaction volume. Reported ROE was slightly below expectations due to prioritizing client relationships and mitigating risks related to the Sartor case. Private sector investment in Peru remains subdued, requiring political stability and structural improvements for long-term growth. The onset of the electoral campaign in Peru towards the end of 2025 may introduce uncertainty and affect economic conditions. The NIM fell 9 basis points to 6.3% in Q4 2024 due to a shift in the asset mix towards cash and equivalents and a drop in market interest rates. The Sartor case resulted in a PEN259 million one-off charge, impacting the company's financial performance. Q: What is the outlook for the Peruvian political landscape and its potential impact on loan growth? A: Gianfranco Ferrari De Las Casas, CEO, mentioned that it is too early to predict the political landscape with 30-40 potential candidates. The election's impact on loan growth is expected to be minimal until late in the year, with the industry projected to grow around 5.5%, and Credicorp aiming to exceed this with a growth of about 6%. Q: What is Credicorp's sustainable ROE target, and when do you expect to normalize OpEx growth from disruptive initiatives? A: Gianfranco Ferrari De Las Casas, CEO, stated that Credicorp aims for a sustainable ROE of around 18% by 2026. This is expected as disruptive initiatives begin to positively impact ROE starting in 2025. Q: How does Credicorp plan to maintain asset quality while increasing loan origination? A: Gianfranco Ferrari De Las Casas, CEO, explained that improved macroeconomic conditions and better-performing new loan vintages give Credicorp confidence in maintaining asset quality. Cesar Wilson, CEO of Pacifico, added that the cost of risk will be managed with a focus on higher yield, higher cost of risk loans within a controlled range. Q: Can you provide more details on the Sartor case provisioning and its expected resolution? A: Alejandro Perez-Reyes, CFO, clarified that a PEN259 million provision was made, primarily at Atlantic Security Holding. The provision is expected to cover potential losses, but the resolution timeline is uncertain as it depends on the liquidator's actions. Q: Why does the efficiency ratio guidance suggest stability or slight deterioration despite Yape's profitability? A: Alejandro Perez-Reyes, CFO, noted that ongoing investments in innovation and core business capabilities are necessary to maintain competitive advantages. Gianfranco Ferrari De Las Casas, CEO, added that Yape's cost-to-income ratio is higher than the overall target, impacting the efficiency ratio despite its profitability. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
