Credicorp Q1 Underwriting Falls 9.1% While Loans Climb 8.2%, Innovation Hits 9%
BAP•Credicorp’s insurance underwriting result declined 9.1% in Q1 due to lower P&C premiums and higher life claims expenses, while risk-adjusted revenues from its innovation portfolio reached 9%, nearing the 10% year-end target. Quarter-end loan balances grew 8.2%, driven by retail and wholesale divisions across BCP and Mibanco.
1. Insurance Underwriting Results
Q1 insurance underwriting fell 9.1% year-on-year, driven by a reduction in property & casualty premiums and inflationary pressures increasing life insurance claims expenses, indicating near-term headwinds in the insurance segment.
2. Loan Growth Drivers
Quarter-end loan balances rose 8.2% year-on-year, supported by strong retail and wholesale lending at BCP and Mibanco, which bolstered net interest income and diversified the credit portfolio across consumer and corporate sectors.
3. Innovation Portfolio Advances
The innovation segment contributed 9% of risk-adjusted revenues, moving closer to the 10% target by year-end; digital wallet Yape expanded to over 2 million active lines in Bolivia and is evaluating entry into Chile’s cash-focused market.
4. Risk Outlook and Election Effects
Cost of risk remains unusually low due to one-off mining profit sharing and pension fund withdrawals but is projected to rise with accelerating retail origination. Management flagged potential volatility from the upcoming presidential runoff and El Niño agricultural impacts ahead of September clarity.
