Credicorp Ltd. (NYSE:BAP) stock fell 1.28% (As on August 9, 11:23:11 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 24. Net Income attributable to Credicorp totaled S/1,339.1 million, which represented a drop of 11.4% QoQ and 4.4% YoY. In this context, ROE for the quarter stood at 16.2% compared to 18.2% in 1Q24 and 18.6% in 2Q23. Total Loans, measured in average daily balances (ADB) resumed growth by increasing 1.3% QoQ and 0.2% YoY. Sequential growth, which was driven mainly by higher demand in Wholesale lending and to a lesser extent by growth in Retail loans at BCP, more than offset a contraction at Mibanco. Total Deposits increased 2.8% QoQ and 6.0% YoY, driven by growth in Low-Cost Deposits. Low-Cost Deposits accounted for 68.2% of total deposits and remain the main source of funding. Provisions increased 34.2% QoQ, impacted by a base effect given that last quarter, FEN provisions were reversed. NPL Ratio declined 24 bps QoQ to stand at 6.0%. This evolution is explained by a reduced NPL ratio at BCP driven by an uptick in loan origination. This dynamic was partially offset by an increase at Mibanco, due to higher delinquencies amid a loan portfolio contraction.  Core Income rose 3.9% QoQ and 10.5% YoY. The interannual expansion was driven by an 8.2% increase in NII, associated with the repricing of retail loans at BCP in line with the higher cost of risk as well as the repricing of the U.S. dollar book.

Moreover, Insurance Underwriting Results increased 13.1% QoQ and 6.4% YoY. YoY growth was driven by a decrease in Insurance Service Expenses due to lower claims, particularly via the Life business. Efficiency Ratio for 1S24 improved 19 bps YoY to 44.3%, mainly reflecting positive operating leverage. Operating expenses increased 9.2% YTD. IFRS CET1 Ratio at BCP stood at 12.1% at quarter-end, down 74 bps QoQ, driven by growth in RWAs

BAP in the second quarter of FY 24 has reported the adjusted earnings per share of $4.49, missing the analysts’ estimates for the adjusted earnings per share of $4.64. The company had reported the adjusted revenue growth of 35.9 percent to $1.76 billion in the second quarter of FY 24, beating the analysts’ estimates. Yape reached break-even in May, with revenues for the quarter up 2.5x YoY driven by growth across its three main business lines: payments, financial and marketplace. Monthly Active Users rose to 12.3 million in 2Q24, with 77% contributing to fee income (vs 75% in 1Q24).