Credicorp Ltd. (BAP) Stock Analysis

Credicorp Ltd. (BAP) holds a dominant position in Peru’s financial sector, underpinned by several durable competitive advantages. Its universal banking subsidiary, Banco de Crédito del Perú (BCP), commands the largest market share in loans (29%) and deposits (32%) as of year-end 2024, outpacing BBVA, Scotiabank, and Interbank. This scale advantage enables BAP to maintain a low-cost funding base—59% of funding from low-cost deposits—supporting a sector-leading net interest margin (NIM) of 6.3% in 2024.

BAP’s digital ecosystem, anchored by the Yape mobile platform, is a key differentiator. Yape reached over 17 million users in 2024, facilitating 700 million monthly transactions and driving financial inclusion. This digital reach both lowers customer acquisition costs and deepens engagement, a feat not matched by local rivals.

Diversification across universal banking, microfinance (Mibanco), insurance (Grupo Pacífico), and investment management provides resilience against sector-specific shocks. Non-interest income streams, including insurance and digital payments, now comprise a growing share of profits, reducing reliance on traditional lending.

Customer satisfaction and brand loyalty are high, reflected in a Net Promoter Score of 79% for Yape and 71% satisfaction among SME clients. BAP’s strong capital base (CET1 ratio: 13.1% at BCP) and prudent risk management further reinforce its position. While foreign banks and fintechs are increasing competition, BAP’s scale, digital adoption, and integrated model remain difficult to replicate.