Q2 2026 Credicorp Ltd Earnings Call
Speaker #1: Good morning, everyone. I would like to welcome you to the Credicorp Ltd. second quarter 2026 conference call. A slide presentation will accompany today's webcast, which is available in the Investors section of Credicorp's website.
Speaker #1: Today's conference call is being recorded. As a reminder, all participants will be in listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation.
Speaker #1: If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you have connected to the call using the HD web phone on your computer, please use the keypad on your computer screen.
Speaker #1: If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Now, it is my pleasure to turn the conference over to Credicorp's IRO, Milagros Cigüeñas, who may begin.
Speaker #2: Thank you, and good morning, everyone. Speaking on today's call will be Gianfranco Ferrari, our Chief Executive Officer, and Alejandro Perez Reyes, our Chief Financial Officer.
Speaker #2: Participating in the Q&A session will also be Francesca Raffo, Chief Innovation Officer; Cesar Ríos, Chief Risk Officer; Diego Cabello, Head of Universal Banking; Eduardo Montero, Head of Insurance and Pensions; and Rocío Benavidez, CFO at MiBanca.
Speaker #2: Before we proceed, I would like to make the following stakeholder statements. Today's call will contain forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties. I refer you to the forward-looking statements sections in our earnings release and recent filings with the SEC.
Speaker #2: We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Gianfranco Ferrari will begin the call with remarks on the current operating environment, Credicorp's strategic priorities, and the key drivers underpinning our confidence in achieving a medium-term ROE of around 22%.
Speaker #2: He will also highlight our strong performance this quarter. Alejandro Perez Reyes will then review our financial performance in greater detail and discuss our outlook for 2026.
Speaker #2: Gianfranco, please go ahead.
Speaker #3: Thank you, Milagros. Good morning, everyone, and thank you for joining us today. Before reviewing our quarterly performance, I would like to begin by sharing why we have greater confidence in Peru's medium-term outlook, and what this means for CREDICORP.
Speaker #3: We believe Peru is entering a more favorable environment for growth. This confidence is grounded, first, in the continued improvement of the country's underlying economic fundamentals.
Speaker #3: Private investment, domestic demand, favorable commodity prices, and business confidence were already gaining momentum before the recent elections. The political transition could help reinforce this momentum.
Speaker #3: Rated visibility around the policy agenda, a less fragmented Congress, and continued commitment to Peru's sound macroeconomic framework and private investment would further support confidence.
Speaker #3: Early signals of policy continuity and discipline, including the formation of a new and solid technical team at the Ministry of Economy and Finance and continuity at the central bank, are encouraging and consistent with a more predictable economic environment.
Speaker #3: Data support this view. Business confidence has recovered to its highest level in years. Private investment is growing by approximately 13% year over year, and domestic demand by more than 5%.
Speaker #3: Peru also continues to benefit from exceptionally favorable commodity prices. With gold prices having roughly doubled since 2023, and copper prices increasing nearly 60%, together these factors have strengthened investment, credit demand, and economic activity.
Speaker #3: Providing a solid foundation for stronger medium-term growth. The principal near-term risk to this outlook is El Niño. While we recognize its potential impact on families, communities, and small businesses, we continue to view it as a temporary and manageable shock rather than a structural change in Peru's growth trajectory.
Speaker #3: At CREDICORP, we are prepared to support our clients and communities through this period, leveraging our ecosystem distribution channels and digital capabilities to help them anticipate and manage potential disruptions.
Speaker #3: Alejandro will provide more details on the expected financial impact and how we are incorporating currently available information related to El Niño risk into our financial outlook.
Speaker #3: Importantly, based on the information currently available, El Niño does not alter our broader confidence in Peru's medium-term outlook or in Credicorp's ability to continue delivering sustainable growth.
Speaker #3: Across the region, the outlook remains mixed but constructive over the medium term. In Chile, while near-term activity has been softer than expected, the investment pipeline, elevated copper prices, and policies aimed at encouraging private investment support a better outlook.
Speaker #3: In Colombia, despite ongoing challenges and the terrible impact of the recent earthquake, market sentiment has improved following recent political developments. This is reflected in a stronger currency and lower sovereign yields.
Speaker #3: Overall, the improving operating environment reinforces our confidence in Credicorp's long-term outlook. Against this backdrop, we delivered a strong second quarter, with solid performance across our businesses and continued progress against our strategic priorities.
Speaker #3: Let me now walk you through the key results. We delivered another quarter of strong execution, reporting a 20.3% ROE. This reflects the strength of our diversified business model and solid performance across our core businesses.
Speaker #3: Operational momentum remained robust across the franchise. Our innovation portfolio contributed 9.9% of CREDICORP's risk-adjusted readiness, keeping us firmly on track toward a strategic objective while demonstrating how the portfolio is becoming an increasingly meaningful contributor to our earnings profile.
Speaker #3: We're also seeing trade demand continue to strengthen. Loan growth accelerated across our main lending businesses, supported by both retail and wholesale banking at BCP as well as Mibanco.
Speaker #3: Our profitability continues to benefit from disciplined execution. Risk-adjusted NIM stood at 5.5%, supported by our low-cost funding advantage, healthy portfolio mix, and disciplined pricing.
Speaker #3: Our strong capital position and disciplined risk management continue to provide resilience. We're actively monitoring El Niño risk, reinforcing our ability to support clients while maintaining a sound risk profile.
Speaker #3: At the same time, we remain focused on building the business for the long term. Our efficiency ratio stood at 45.4%, while investments in innovation and digital capabilities continue to broaden our revenue base.
Speaker #3: Deepened customer engagement, fostered financial inclusion, and supported more scalable growth. As we have discussed in recent quarters, our previous medium-term ROE expectation of around 19.5% had become increasingly conservative as our performance strengthened and the underlying economics of our business continued to improve.
Speaker #3: With greater visibility across our key markets and earnings drivers, we believe the time is right to update our medium-term ROE expectation. We now believe Credicorp has the capacity to deliver a medium-term return on equity of approximately 22%.
Speaker #3: This reflects a more favorable operating environment but, more importantly, the structural transformation of our ecosystem. Over the past several years, we've strengthened the drivers of our earnings, improved the quality of our loan portfolio, and enhanced risk management capabilities, reinforcing our structural funding advantage and diversifying our sources of revenue.
Speaker #3: At the same time, we have invested consistently in technology, data, and talent, creating a more scalable and efficient business model. Innovation is an increasingly important part of that transformation.
Speaker #3: It is expanding financial inclusion and deepening customer relationships while becoming a more meaningful contributor to growth, earnings diversification, and long-term resilience. Together, these structural improvements position us to deliver stronger and more sustainable profitability across economic cycles.
Speaker #3: We look forward to sharing more information about how our innovation strategy is becoming an increasingly important driver of growth and value creation across Credicorp at our digital strategic update on November 17.
Speaker #3: Now, let me turn the call over to Alejandro.
Speaker #2: Thank you, Gianfranco. And good morning, everyone. As Gianfranco mentioned, we delivered a 20.3% ROE this quarter, supported by strong operating performance, accelerated loan growth, and higher risk-adjusted revenues across our diversified business ecosystem.
Speaker #2: As I discussed the quarter's highlights, I will focus on the year-over-year operating trends. Loans measured in quarter-end balances increased 13.1%. This uptick was driven primarily by DCP, through both retail and wholesale banking, and by Nibanco.
Speaker #2: Asset quality improved further, with CREDICORP's NPL ratio declining to 4.1% for the quarter. This was supported by better origination quality and enhanced collections capabilities. The cost of risk stood at 1.9%, reflecting portfolio growth within our risk appetite and an impact of 27 basis points due to El Niño-related provisions, based on currently available information.
Speaker #2: Net interest income increased 13.3%, mainly driven by lower interest expenses supported by our low-cost funding structure and by a higher-yielding loan mix. Against this backdrop, NIM stood at 6.6%.
Speaker #2: Other core income grew 19.7%. Fee income increased 15.9%, boosted by transactional activity at Yape and BCP. Gains on FX transactions rose 29.8% due to higher volumes at BCP, which increased in the context of higher volatility.
Speaker #2: In the context of higher volatility, I’m sorry. Lastly, the insurance underwriting results decreased, mainly reflecting a base effect from provision reversals recorded in the second quarter of last year in the Life business.
Speaker #2: Our diversified business portfolio, strong capital position, and healthy asset quality put us in good stead to navigate the potential El Niño impact as we continue to execute our strategic priorities.
Speaker #2: Next slide, please. Peru's economy remained resilient in the second quarter of the year, with GDP estimated to have grown by around 3% year over year.
Speaker #2: Robust domestic demand, supported by historically high terms of trade, employment gains, and ongoing business cycle momentum, helped offset a sharp contraction in primary activities.
Speaker #2: Primary GDP is estimated to have fallen by nearly 5% year-over-year, marking its steepest decline since 2014, excluding the pandemic, as El Niño-related disruptions weighed on fishing, agriculture, and primary manufacturing.
Speaker #2: Despite these headwinds, domestic demand is estimated to have expanded roughly 5% year over year, marking the seventh consecutive quarter of strong growth. High-frequency indicators continue to signal broad-based and robust economic expansion, with several indicators posting double-digit year-over-year growth.
Speaker #2: Private investment expectations have rebounded sharply following the presidential election, reaching their highest level since the series began in 2013. President Keiko Fujimori has confirmed Julio Velarde's continuation as governor of the central bank and appointed Elmer Cuba, a respected macroeconomist and former central bank director, as finance minister, reinforcing expectations of solid and predictable macroeconomic policy under the new administration.
Speaker #2: Next slide, please. Under Chairman Kevin Warsh, the Federal Reserve has emphasized its commitment to price stability and signaled limited tolerance for persistently elevated inflation.
Speaker #2: Economists remain divided between expectations of additional rate hikes and an extended pause in monetary policy. In Peru, annual inflation remained around 4% year-over-year between April and July, its highest levels since late 2023, driven primarily by higher local transportation costs.
Speaker #2: Core inflation, excluding transportation, is still below 2%. In Colombia, annual inflation eased slightly to 6% year-over-year in July, down from 6.1% in June, marking the first moderation after four consecutive monthly increases.
Speaker #2: Inflation remains elevated, however, partly reflecting the significant minimum wage increase implemented at the beginning of the year. The central bank has responded by raising its policy rate by 275 basis points since December.
Speaker #2: Investor sentiment, in turn, has improved following the election of President Abelardo de las Priella. In this context, the peso has appreciated sharply, making its strongest showing against the U.S. dollar since 2019.
Speaker #2: In Chile, higher oil prices and weaker-than-expected mining production have weighed on the economic outlook this year. Annual inflation is at 3.5% year over year in July, after reaching its highest level in nine months in June, while the central bank has kept the policy rate unchanged at 4.5%.
Speaker #2: In June 2026, Bolivia transitioned to a market-based FX framework, replacing its long-standing peg. We do not anticipate a material impact on Credicorp, given that we incorporated market exchange rate dynamics in Bolivia in our reporting as of the first quarter of last year.
Speaker #2: In parallel, the IMF and authorities reached a staff-level agreement on a new program of about $1.9 billion to support the country's economic reform program.
Speaker #2: Although uncertainty persists around oil prices, geopolitical developments in the Middle East, and the potential impact of El Niño during the remainder of the year, as Gianfranco mentioned, we believe that improvements in the regional operating environment support our confidence in a more favorable medium-term outlook.
Speaker #2: Next slide, please. Before moving on, I would like to address El Niño risk in Peru—a key topic for investors assessing our earnings, asset quality, and capital generation resilience.
Speaker #2: El Niño is a transitory event that periodically affects Peru. While it may create short-term volatility, it does not alter our long-term view of the Peruvian economy or its underlying strength.
Speaker #2: So far in 2026, El Niño Costero has mainly affected Peru’s fishing, agriculture, and related activities in the north, while the broader economy has remained resilient.
Speaker #2: The strongest impact would likely materialize in the first quarter of next year if the event intensifies or converges with a global El Niño scenario.
Speaker #2: From a macro perspective, we estimate 2027 GDP growth to remain resilient around 3% under a moderate to strong El Niño scenario, while an extraordinary event could lead to a more pronounced slowdown.
Speaker #2: Importantly, Peru is entering this period with stronger fundamentals and higher liquidity across the financial system than in prior El Niño episodes. For Credicorp, estimated direct exposure to potentially affected clients is approximately 9% of total loans.
Speaker #2: While visibility should improve toward the last quarter of this year, we are already incorporating the currently available information related to El Niño risk, resulting in additional provisions starting in June.
Speaker #2: Under the scenarios currently assessed, we expect full-year 2026 cost of risk to remain within guidance. Looking towards 2027, a more severe event could moderate loan growth and fee income through downward pressures on activity.
Speaker #2: However, we are better prepared than in previous similar events, supported by lower direct exposure, early mitigation, stronger risk management and analytics, and healthier portfolio quality.
Speaker #2: More broadly, this is not a new risk for us. We have a robust governance framework and mitigation playbooks, supported by enhanced data and digital capabilities.
Speaker #2: This helps us identify vulnerable clients earlier, communicate at scale, and deploy targeted actions faster. In short, we are approaching this scenario from a position of strength. Portfolio quality remains healthy, our balance sheet is strong, and we are confident in our ability to manage potential El Niño impacts while supporting clients, communities, and the broader Peruvian economy, and preserving profitability.
Speaker #2: Next slide, please. This quarter, BCP's profitability remains strong with a favorable economic backdrop. Loan growth continues to accelerate, as underlying credit risk trends remain positive.
Speaker #2: In parallel, currently available information related to El Niño risk has been incorporated into provisions. In this context, ROE stood at 29.2%. From a quarter-over-quarter perspective, total loans rose 4.7%.
Speaker #2: In effect-neutral terms, loan growth stood at 5.5%. Retail loans led the expansion, bolstered by performance in the consumer and SME payment segment. Additionally, wholesale loans rose primarily on the back of long-term loans, as the outlook for private investment continued to improve.
Speaker #2: NIM stood at 6.1% as the loan portfolio shifted to a higher-yield mix, while funding costs remained stable. The NPR ratio fell to 3.9%.
Speaker #2: This result was driven by improvements across business segments, where the NPR ratio fell on the back of fortified risk management capabilities. The cost of risk rose to 1.4%, reflecting the normalization of underlying cost of risk and additional El Niño-related provisions.
Speaker #2: Underlying provisioning was mainly driven by portfolio growth in specific retail segments, particularly consumer and SME payments, where higher-yielding products continued to perform within our expectations.
Speaker #2: As a result, BCP's risk-adjusted NIM stood at 5.2%. On a year-over-year basis, total loans rose 10.9%, and 12.2% in effect-neutral terms, led by retail banking and, secondarily, by wholesale banking, through the same factors mentioned in the quarter-over-quarter analysis.
Speaker #2: NIM rose 12 basis points, mainly driven by funding cost improvement alongside an increase in the low-cost deposits share of total funding. The NPR ratio dropped 93 basis points, fueled mainly by the SME, payment, and individual segments—mostly driven by better origination and enhanced collection capabilities.
Speaker #2: Cost of risk rose 25 basis points, mainly.
Speaker #1: Higher volumes, rather than a deterioration in underlying credit trends, drove higher income, which rose 15.4%, mainly due to fee income. Strong transactional activity was channelled through Yape and VCP. Gains on FX transactions also contributed to this result, albeit to a lesser extent.
Speaker #1: As transaction volumes rose significantly in a context marked by high volatility . As a result , the ratio of other core income to assets remained strong , supported by our diversified revenue streams Finally , operating expenses , which are better explained on an accumulative basis , rose 14.9% year to date due to an uptick in both administrative and personnel expenses .
Speaker #1: Administrative expenses rose on the back of growth in IT-related services and use of cloud infrastructure. Personnel expenses rose, driven by the continued development of commercial and technological capabilities and by an uptick in variable compensation.
Speaker #1: In this context, the efficiency ratio stood at 38.6% for the first half of the year. Next slide, please. Yap continues to strengthen its position as Peru's leading digital ecosystem.
Speaker #1: The platform remains highly engaged, with more than 15 million monthly active users transacting 69 times per month and maintaining an NPS of 78.
Speaker #1: Customer engagement remains exceptionally strong , and we continue to see that translate into stronger unit economics . Revenue per mile reached 11.1 solid , outpacing growth in expenses per month , which stood at $6 .
Speaker #1: As a result , Yap contribution to credit core risk adjusted revenues increased to 8.9% , reinforcing its growing relevance within the group At the same time , Yap continues to expand its financial services footprint Loans reached 1.8 billion , solid , up four times year over year , while the number of clients receiving loan disbursements increased to 5.6 million .
Speaker #1: With loan penetration at around one-third of monthly active users, we continue to see significant opportunities to further expand lending adoption, increase customer lifetime value, and deepen financial inclusion across Peru. As Yape scales, the composition of Yape revenues continues to evolve, with lending further increasing its contribution to 28%.
Speaker #1: While payments contributions stood at 45% . Moreover , revenue generating payment transactions grew 42% year over year , continuing to strengthen Jaffe's ability to generate data , enhance customer engagement and unlock cross-selling opportunities across credit card is a strong engagement , improving monetization and significant headroom for deeper product and service adoption Position the platform to sustain scalable , profitable growth Next slide please .
Speaker #1: Vivanco continues to strengthen its franchise , combining healthy growth with disciplined risk management . At the same time , we . Continue fostering revenue to enhance the resilience and quality of earnings .
Speaker #1: This strong execution translated into a quarterly ROE of 22.9% on a quarter over quarter basis Loans measured in quarter end balances grew 4.4% , supported by continued growth in low ticket loans .
Speaker #1: The main driver of recent quarters and a greater focus on higher ticket segments , where larger loan sizes accelerated volume growth . In this context , the NPL ratio continues its downward trend , reaching a record low of 4.8% .
Speaker #1: The average yield on interest earning assets maintained an upward trend , offsetting a slight uptick in the cost of funding . As a result , Nim rose 23 basis points to stand at 15.2% .
Speaker #1: The cost of risk rose 30 basis points and 5.1% , reflecting higher underlying provisions and additional related provisions Provisioning for underlying credit risk growth , driven primarily by portfolio growth within our risk appetite and to a lesser extent , a slight increase in write offs .
Speaker #1: Risk adjusted means that 11.2% down five basis points from a year over year perspective . Loans rose 15% , supported by improved productivity amid a dynamic economy .
Speaker #1: In this context . Our portfolio of margin increased despite a slight uptick in the cost of funding . As a result , Nim rose 78 basis points .
Speaker #1: The cost of risk fell 24 basis points on the back of low-risk vintages, despite ongoing investments in strategic initiatives to fuel digital transformation and modernize technology.
Speaker #1: The efficiency ratio for the first half of the year dropped four percentage points to a standard 48%. Vivanco, Colombia, continued to deliver strong results with double-digit growth, disciplined risk management, and enhanced commercial productivity.
Speaker #1: As a result, ROE reached 18.5% for the quarter. Next slide, please. We delivered solid results this quarter on the back of strong commercial execution across all businesses.
Speaker #1: In this context , Roe stood at 19.1% at quarter end . Net income remained relatively flat year over year Pacifico continues to deliver solid profitability , led by our life business , the largest contributor to net income .
Speaker #1: Our life business posted healthy organic growth this quarter, driven by strong momentum in bancassurance and retail sales. Nevertheless, net income reported lower results due to a base effect associated with provision reversals in the disability and survivorship line.
Speaker #1: In the second quarter of last year, in the PNC business, net income fell primarily due to lower underwriting results, which raised higher gains.
Speaker #1: Our corporate health business posted higher net income for the quarter , supported by stronger premium production . As a customer base , expanded Meanwhile , results in our medical services business remained relatively stable , supported by resilient commercial dynamics and disciplined cost management Next slide please .
Speaker #1: Profitability in our investment management and advisory business strengthened significantly this quarter. Sustained growth in recurrent businesses, coupled with an uptick in trading contribution due to temporary market volatility, drove a strong ROE of 23.5% from a year-over-year perspective.
Speaker #1: Revenues increased, supported by solid performance across our recurring businesses. Asset management and wealth management contributed positively, with AUM up 44% and 30%, respectively.
Speaker #1: The capital market line also contributed significantly to results, with heightened market volatility and increased activity among corporate clients creating favorable conditions to boost trading and client-driven revenues.
Speaker #1: Higher revenues were partially offset by an increase in operating expenses, where the uptick was driven by a comparatively low base in the first half of 2025.
Speaker #1: As a result , net income increased 47% year over year . Next slide please . Now , I'd like to examine the evolution of our consolidated balance sheet sequentially Interest earning assets grew 1.8% driven primarily by loan growth at VCP and to a lesser extent by higher investment balances .
Speaker #1: As we capitalized on tactical opportunities by leveraging our cash position. On the liability side, the 3.5% funding increase was driven by growth in demand and time deposits, and an uptick in the balance of central bank funding instruments.
Speaker #1: On a year over year basis , interest earning assets rose 12.2% , led by loan growth at VCP and the impact of this shift in the asset mix offset the impact of decreasing interest rates .
Speaker #1: Keeping the yield on interest-earning assets stable at 8.4%. On the liability side, lower interest rates and an increase in the share of low-cost deposits drove a 29 basis point improvement.
Speaker #1: Decline in the funding cost, which stood at 2.2% at quarter end. Against this backdrop, NIM was 6.6% for the quarter. Next slide, please.
Speaker #1: Moving on to loan portfolio quality, portfolio quality continued to evolve favorably this quarter as NPLs dropped to 4.1%, driven by improvements in origination, monitoring, and collection capabilities. Based on currently available information, we raised approximately $106 million in additional provisions related to El Niño risk.
Speaker #1: This brought our reported cost of risk to 1.9%. Excluding this impact, cost of risk stood at 1.6%, primarily reflecting portfolio growth within our risk appetite.
Speaker #1: Underlying portfolio trends remain solid , supported by healthier vintages and enhanced risk capabilities . As a result . Current levels remain strong , reinforcing the balance sheets ability to absorb future volatility while preserving capacities to support growth .
Speaker #1: In this context , the NPL coverage ratio rose and stood at 117.3% . Next slide please . Core income grew 15.1% year over year on the back of diverse revenue streams , with net interest income , fees and FX gains reporting double digit expansion , profitability metrics continued to strengthen year over year with risk adjusted means standing at 5.55% this quarter , reflecting disciplined pricing , portfolio mix optimization , and solid underlying credit performance .
Speaker #1: The efficiency ratio for the first half of the year stood within guidance at 45.6%. Operating expenses grew 13.5%, fueled primarily by core businesses and investments in our innovation portfolio.
Speaker #1: Growth in core expenses at VCP was driven mainly by expenses for commercial and transactional capabilities. Development expenses for our innovation portfolio, which were led by JP, Tempo, and Cookie Rose, grew 33% and represented 84% of disruptive expenses for the quarter.
Speaker #1: Next slide, please. First half ROE reached 21.2%, supported by the strength of our integrated business ecosystem and ongoing improvement in economic conditions.
Speaker #1: Net income remained robust , bolstered primarily by accelerated loan growth across key businesses . Lower expansion was achieved alongside prudent risk management and complemented by an increase in contributions from diversified revenue streams , which rose from the back of market leading transactional and digital capabilities Now I will move on to our guidance Next slide please .
Speaker #1: We continue to expect GDP to grow around 3.5% in 2026 , including the estimated impact of El Nino . We are raising our outlook for loan growth measured in quarter and balances to around 12% , reflecting stronger than expected momentum primarily in retail banking at VCP and Banco .
Speaker #1: The expected loan shift towards retail , coupled with a more recent scenario where interest rates are expected to remain higher for longer , should support Nim and risk adjusted Nim , which we expect to stand at the higher end of our guidance range As we origination continues to expand and we incorporate currently available information related to a new risk , we expect the cost of risk to increase in the second half of the year and to remain within our guidance range We are also raising our fee income outlook now , expecting high teens growth , supported by stronger transactional activity .
Speaker #1: Continued economic momentum and our strategy to strengthen the principal efficiency ratio is expected to remain within guidance. We are reaffirming our 2020 guidance of around 19.5%, with a current bias to the upside, subject to how Nino evolves. Operating income came in ahead of our expectations.
Speaker #1: Visibility on the potential severity of El Niño remains limited. As new information becomes available, we will continue to reflect updated, engineer-related provisions. Looking ahead to the medium term.
Speaker #1: As mentioned earlier, we expect ROE to move structurally higher. This outlook is supported by stronger loan growth across our core businesses.
Speaker #1: A higher yield portfolio mixed sustained funding advantage and increasing contributions from free base revenues as a consistent initiatives continue to scale . We expect to capture greater operating leverage while maintaining disciplined risk management and capital allocation Together , these drivers strengthen our ability to deliver a medium term ROE of around 22% .
Speaker #1: Before we begin the Q&A, and given that this will be my last conference call as Credicorp CFO, I would like to take a moment to thank all of you for your support, engagement, and constructive dialogue.
Speaker #1: Throughout my tenure . Your questions , insights , and feedback have helped us make us better , and I'm deeply grateful for your professionalism and trust as I take all my new role in Ivanhoe and microfinance business .
Speaker #1: I look forward to staying connected with many of you and sharing our progress and perspectives on the opportunities ahead. I would also like to wish Ignacio every success in his new role, having worked closely with him for the last two and a half years.
Speaker #1: I am confident that he will do an outstanding job, and I know Credicorp will continue to benefit under his leadership and expertise. Now, I would like to open the Q&A session.
Speaker #2: Thank you . We will now begin the question and answer session . If you would like to ask a question , please signal by pressing star one on your telephone keypad .
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Speaker #2: We will pause for just a moment to allow everyone the opportunity to ask questions. We also ask that you please only ask one question at a time.
Speaker #2: After each question has been addressed by our speakers , you will then be allowed to ask as many follow ups as needed . But again , please only ask one question at a time .
Speaker #2: Thank you. The first question will come from Arnesto Gabilondo with Bank of America. Please go ahead.
Speaker #3: Thank you . Hi . Good morning . Gianfranco Casas . Alejandro . Ignacio . Cesar . Francesca and Milagros Congrats on your second quarter results and in your conviction of reaching a medium term ROE of 22% in the next years and also very helpful .
Speaker #3: The slide that you provided about Nino was very, very helpful. So, my question would be on loan growth. Congrats on returning to a double-digit loan growth.
Speaker #3: And I noted that you are expecting around 12% growth this year. But having said that, how should we think about the long-term growth breakdown by segment?
Speaker #3: You also understand if you would be conservative in the risky portfolio, or how comfortable you are to grow the portfolio under a potentially strong El Niño.
Speaker #3: Thank you
Speaker #1: For yes . Thank you . Thank you for your question Regarding El Nino , I will say that our approach has been both comprehensive , trying to address the different dimensions of the impact and also very granular at the same time as a Alejandro has highlighted , we have identified the parts of the portfolio by segment , by geography , the feel of the client that has going to be more impacted , and the scenarios that we are contemplated and we are adjusting and going to adjust gradually .
Speaker #1: The appetite in this segment changed very quickly, so our impact is going to be related to this part of the portfolio, depending on the severity.
Speaker #1: But in the rest of the country , such as economic growth , our ambition and expectations remains strong . So maybe . compliment or maybe complementing comments are actually the the question has like a it's a two fold answer .
Speaker #1: One is specifically on El Nino , which was was what answered . I would only add there that we're also trying to be proactive in helping our clients to be more prepared for the impact by industry , by region , by , by really as , as I mentioned over .
Speaker #1: But the other answer is more a longer term answer is , as mentioned , a the presentation are business confidence is at record levels and private investment has been growing at double digits .
Speaker #1: Private consumption has been growing at over 5% over the last, I'd say, six quarters already. Well, commodity prices are there, and so on.
Speaker #1: So yes , Nino is I would say like a hiccup in terms of of potential , a negative impact . But in a more longer term vision , we're very confident that the macro environment is very , very positive .
Speaker #1: Maybe this is Alejandro . Maybe just to add one more important data point to to Gianfranco Casas comment is the loan penetration . I think I mentioned this before , but if you take constant exchange rate of December of 2025 , at the end of last quarter , the penetration of loans in Peru is 34% .
Speaker #1: In 2019, it was 42% of GDP. So, I mean, there's still an opportunity even to go back to numbers that we've already seen.
Speaker #1: So, we think the opportunity is big, and we add to that the capabilities that we have developed. We are really confident in the mid-term loan growth, regardless of the hiccup that might come in the short term.
Speaker #3: No . Perfect . Very helpful . Gianfranco Casas and Alejandro . And just to follow up on all this in terms of the trend For , for wholesale and retail , should we expect both loan portfolios to be at the double digit because of what you were mentioning , private investment , private consumption , commodity prices , all that should be helping .
Speaker #3: And in that scenario, very, very granular in what could be exposed related to El Niño. So, how should we think about the long-term growth for both segments?
Speaker #3: Double digit for both? Or how are you thinking about it?
Speaker #1: Yes , we are expecting , I mean , again , without considering the HIPAA hiccup coming from El Nino , we are expecting double digit loan growth for both wholesale and retail .
Speaker #1: You know, retail has already been showing it. And we were mentioning wholesale is picking up again. We did have very high expectations from private investment.
Speaker #1: So yes, the short answer is yes. Both portfolios should grow double digits.
Speaker #3: Perfect. Thank you very much.
Speaker #2: The next question will come from Brian Flores with Citibank. Please go ahead.
Speaker #4: Hi . Tim . Good morning . Congratulations on the results . And best of luck to Alejandro and Ignacio on the respective roles I have a question on asset quality .
Speaker #4: The cost of risk seems to be very , very controlled . Despite the fast growth you're showing right across the board in in SMEs in JP , in consumer .
Speaker #4: So I wanted to understand strategically , if we as analysts , do you think we're I don't know , maybe underestimating how much better your on the writing is or the collection have improved because or do you think this is more extraordinary regarding you know , the the extraordinary liquidity in the system , the good conditions from the macro , just wanted to understand how much do you think this is ?
Speaker #4: Idiosyncratic, and how much could this be more of a tailwind from the macro side?
Speaker #1: Yes . Thank you , Brian , for , for the question . I think without that , the positive economic environment is a significant factor .
Speaker #1: As we have mentioned previously, we have been working very disciplined in several parts of the risk capabilities and origination models, monitoring collections.
Speaker #1: And we have entered , I would say , after an initial phase of identifying a particular improvements in a new phase in which we are developing , I would say better , higher capabilities .
Speaker #1: And we are starting to reap the benefits of that . The approach is very disciplined . BCB . Banco also in the other subsidiaries of the group level by level , and we are developing and deploying this capabilities .
Speaker #1: These capabilities are also going to help us to withstand the potential impacts of El Niño. But our long-term vision is that we are going to increase the capacity to originate higher.
Speaker #1: In general, higher-yielding loans come with controlled risk, which we are monitoring very closely. As for the risk appetite, Alejandro highlighted specifically the collections process. We have been more focused on models, origination, monitoring, and recently we have started to develop additional capabilities and collections strategies that are showing results in BCB. So the short answer is the environment helps, but we are doing our job improving internally.
Speaker #5: Brian, just one quick comment on top of what was just mentioned: don't forget that we don't manage by cost of risk, we manage by risk-adjusted means.
Speaker #5: So yes, the cost of risk may increase. But what we are convinced of is that the risk-adjusted NIM is going to increase.
Speaker #5: More than that really , because as we go into new markets , the the portfolio is a great example . Yes , the cost of risk is higher , but the risk is also higher
Speaker #4: No super clear Gianfranco . Thank you . Just also , if I may , a quick follow up on your recent comment We know obviously we have a new administration coming in .
Speaker #4: Just wanted to check with you after maybe your initial approaches with them. If you feel the tone, in terms of partnerships and in terms of growth, is a bit more upbeat, or are you a bit more constructive in terms of the outlook here, particularly for growth rate?
Speaker #5: Yeah , yeah . Yes . As Alejandro mentioned before , the penetration , the financial system , we've gone back . It's not that we it's still very low and we've gone back .
Speaker #5: So We haven't had any specific contacts with the administration . But from what we see and listen , the whole environment is much is going to be much more proactive in terms of promoting financial inclusion , promoting growth , promoting private investment , and obviously that environment is much , much more benign for for growth of the financial system
Speaker #4: No. Perfect. Thank you very much.
Speaker #2: The next question will come from Renato Meloni with Autonomous Research. Please go ahead.
Speaker #6: Hi , everyone . Good morning . Congrats on the results and thanks for taking the question here . So I want to you to expand your comments on the provisions for El Nino and what to expect going forward .
Speaker #6: So first , on the 106 million this quarter , was that done like client specific or it was that more sector specific ? And the ones that you mentioned before .
Speaker #6: And then, going forward, is this going to be a recurring level for the next couple of quarters, or is this enough for the foreseeable future?
Speaker #6: Thank you
Speaker #1: Yes . Thank you . Thank you for the question , Renato As we mentioned , we have done a very thorough analysis of the portfolio , talking specifically the provision .
Speaker #1: Think We have gone client by client , segment by segment in the wholesale part of the portfolio . And in the retail , we have used an approach of geography and profile of the client .
Speaker #1: And we have several scenarios, and we are with the logic of expected losses. That is embedded in the logic of NIAS 9.
Speaker #1: We are constituting provisions , and we are going to have probably a second important point of control . At the end of the second quarter , the beginning of the sorry , at the end of the third quarter , the beginning of the fourth , because in our conversation with the specialists , the climatologists at this point , September , October , we are going to have a much better assessment of the severity .
Speaker #1: We are moving in the expectation of a medium and strong El Niño. And at this point, we are going to make a reassessment to calibrate the expected losses that we need to book this year.
Speaker #6: Perfect . September . October . A potential new adjustment . And that's going to be for this year . And when we get to 2027 , when you mention it's the when the economy will see the impacts , maybe another one there or potentially reversing , what was that ?
Speaker #5: Yes . Renato , the way we provision through IFRS nine is a forward looking provision . Therefore , you're completely right . Depending on the data , as I just mentioned , depending on the data , we can analyze in September or October , we will make a new assessment .
Speaker #5: And as we move forward, and the real impact of the Niño comes into play, we will decide what the—what are we.
Speaker #5: The models will tell us what the provision should be, but our provision system is forward looking. Yes.
Speaker #1: Based on expected loss .
Speaker #6: Thank you. Thank you. And congrats again on the strong results.
Speaker #2: The next question will come from Daniel Voss with Safra. Please go ahead.
Speaker #7: Hi guys . Good morning Congrats on the results . Alejandro Ignacio wishing you the success on your new roles . So my question is regarding your your refreshed mid-term ROE guidance .
Speaker #7: So we often as you you are a bank . We often do a bottom up analysis to your model , but Credicorp you still are holding also , right ?
Speaker #7: So you have a lot of businesses we could look at the top down view or some of the parts view also . So I guess I guess my question is which companies in your holding carry the most upside right now ?
Speaker #7: So my bank is already running above the 22% guidance. VCP runs at 30, and Pacific and the advisory run below. So should we.
Speaker #7: Should we expect even better ROE at the ones that already run above it? Or are they always improving at the ones who... Which rules these levels right now?
Speaker #7: Thank you .
Speaker #5: Alejandro .
Speaker #1: Yes. Thank you, Daniel. I'll first start by talking about the levers that we believe are behind the new mid-term ROE that we've shared.
Speaker #1: And then, to give you some color on the specific question—basically, we believe this comes from continuing to grow in the underpenetrated financial product segment.
Speaker #1: And this , by the way , is lending . But it's also investments . It's also insurance . So all in all , there are all under-penetrated segments .
Speaker #1: Even if you compare them to countries like Colombia . And of course , Chile , you know , so , so there's still an opportunity to continue penetrating .
Speaker #1: The other thing is that we are expecting higher risk-adjusted margins. This is supported by pricing, and the shift in portfolio mix that I've mentioned in risk capabilities as well.
Speaker #1: So we should see an impact there. The other important thing is an increase in fee income and monetization of our innovation portfolio.
Speaker #1: The most visible one, but other ones coming down the pipeline that should start to generate also more fee income and a positive operating leverage, where basically income should grow faster than our expenses.
Speaker #1: So all of those things bring us to this new around 22% ROE . When you talk specifically , I think there's . Both since can be true in the sense that we believe there's still space for some improvement in Roe in , in the companies that are performing strong today , the VCP , going back to this penetration in lending , etc.
Speaker #1: . But if you think about also the penetration in insurance and penetration in , in mutual funds , there is still space also in the other companies .
Speaker #1: So we are we are not seeing this like specifically in 1 or 2 companies . We believe there's space for , for improvement across the board
Speaker #5: Just to clarify, I don't want it to be just mentioned. Also, bear in mind the impact on the disruptive initiatives. They are already underway.
Speaker #5: In terms of they are already accretive . So they're going to be accretive this year . And obviously , as we move forward , they should be what we expect them to be much more accretive .
Speaker #5: So that's another level that you should take into account.
Speaker #7: Okay . Thank you
Speaker #2: The next question will come from Carlos Gomez-Lopez with ACE SBC. Please go ahead.
Speaker #8: Thank you for taking the question . And the first thing , congratulations and thank you to Alejandro for this time with us . It has been brief , but it has been good .
Speaker #8: And good luck to Ignacio in his new role. I'm going to go back to the same question, which is about the target array.
Speaker #8: And my question is a little bit different . Is what is the urgency to increase the mid-term ROE ? I mean , you you were at around 17% for a long time , increased only last October to 19.5 .
Speaker #8: Now you go to 22. I mean, at this point in time, where arguably everything is going right, you're delivering 21%.
Speaker #8: And is this something that you are setting as an internal goal, or has something changed fundamentally that makes you believe that you absolutely need to be there?
Speaker #8: And I also ask that because, if I go back in time over the last 10 or 20 years, your eyes have been my number—17.5%, 19%.
Speaker #8: That's even taken out . Covid . And you actually are less leveraged now than you were then . You have more capital . So , I mean , it would stand to reason that maybe , you know , it doesn't get that high .
Speaker #8: So, we don't understand why you need to move the target now and again. I don't doubt that you can achieve it.
Speaker #8: I was just wondering why. Thank you.
Speaker #1: Hi . Carlos this is Alejandro . So I'll begin by saying that , yes , we did mention the 19.5 in October of last year , but I specifically mentioned there that we were going into a big political cycle in all of Latin America .
Speaker #1: If you remember , at that time , we were about to have elections in Colombia . I'm sorry , Chile , Bolivia , Colombia , Peru , and so we basically decided to take a conservative stance .
Speaker #1: And we were explicit about it. And we did mention to them that we would come back after that cycle with a revised number, which is what we're doing right now.
Speaker #1: And when you look , and I was just explaining the drivers , the ecosystem , we've built , our ability to principality , we built and our ability to better serve all these clients .
Speaker #1: It makes us confident that we can achieve a higher ROE than the around 90.5 even . I mean , just to give you an example , even this year , if there was no El Nino , we would have outperformed .
Speaker #1: Clearly, that 19.5% probably would have been above the 20% mark. So, our ability to generate returns today is higher than the number we gave for a stable situation.
Speaker #1: I mean , taking away specific things like El Nino . So we thought it was the right team to basically give , give a more realistic number of what we can achieve in the coming years .
Speaker #5: And Carlos , you hit right on the spot . We also are a more or less leveraged company . So the risk of of CREDICORP LTD is lower than a few years ago when the liquidity ratio was in single digits .
Speaker #5: So, but we're confident that the 22% is more than achievable.
Speaker #8: Thank you so much, and good luck.
Speaker #5: Thank you again .
Speaker #2: If you have a question, please press star, then one. The next question will come from Yuri Fernandez with JP Morgan.
Speaker #2: Please go ahead
Speaker #9: Hey , can you hear me ? Hi , Jean-Francois . Milagros . Cesar . Alejandro . Everybody . I have a congrats . Also on the quarter .
Speaker #9: Pretty good . 20% . Despite the the additional provisions , I have a curiosity about the quarter here on other income , especially the non-core income .
Speaker #9: It moved up a lot this quarter . Some 40% quarter over quarter . So if you can explain what drove it , I guess , on your comments in the note , you mentioned effects maybe securities mark to market .
Speaker #9: So, what drove this? Is this client activity? Should this be more recurring, or should we see a normalization of this other income line?
Speaker #9: Thank you
Speaker #1: Yes . Sure . Hi , Audie . So basically I would say it's it's come from a lot of different sources as we increment this principality , we've been talking about , there's more transactional fees that we that we generate both at VCP .
Speaker #1: JP I mentioned FX as a driver also , which has been growing for , for the last few years . It had a very good return due to the volatility related to elections , but we still believe it can continue to have very strong results going forward .
Speaker #1: And in general , again , as we move further down with our strategy to increase principality , we are getting a larger share of of fees in the market , and we are expecting that to continue .
Speaker #1: And that's why, when I mentioned earlier, when I was giving the guidance, that we're talking about high teens or mid-to-high teens growth there.
Speaker #1: And we believe that should continue going forward.
Speaker #9: No super clear . And if I may , a second one here , guys , just on cost and efficiency could we could we see for the 22 ROE cost to income being much better because I know today expenses and revenues are growing somewhat at a similar pace .
Speaker #9: But you are accelerating on growth . You are pretty confident with risk adjusted margins . I know you have your , you know , new initiatives , 350 Bips guidance for for cost to income headwind .
Speaker #9: But I don't know . Could we start to see expenses slowing down ? And maybe , you know , efficiency become a powerful tailwind for you ?
Speaker #9: Thank you
Speaker #1: Yeah . The answer is yes . This number hasn't changed . When we were in October of last year , we talked about a mid-term cost to income closer to 40% .
Speaker #1: We are expecting to go in that direction or our review of the market takes that direction as our innovation scale . Gianfranco Casas mentioned today , the innovation portfolio is positive in ROE , but it has around 300 basis points of of drag on cost to income .
Speaker #1: That is going to change at the apex . It's scaling and goes from the current cost to income , which is higher than than VCP .
Speaker #1: And going below those numbers , more kind of like large neobanks . So all in all , what we see going forward is an improvement in , in the operating leverage .
Speaker #1: So basically, income is growing much faster than expenses and going to this around 40% cost-to-income in the mid-term.
Speaker #9: Okay. Perfect. Thank you very much.
Speaker #10: Thanks .
Speaker #2: The next question will come from Juliana O'Hara with Goldman Sachs. Please go ahead.
Speaker #11: Hi . Hi , everyone Thank you for taking my question and congratulations on your results . I just have a quick follow up on a comment you made earlier .
Speaker #11: I think you mentioned you're adjusting your portfolios based on what you're seeing for El Niño. I just wanted to know if you could share a bit more color—if that would have some mixed impact on NIM and your asset quality expectations.
Speaker #11: Thank you
Speaker #1: Yes, thank you. The change is actually in the origination mix and specific areas. So we continue improving, in general, but identifying areas that are going to be more severely impacted with the profile of the clients.
Speaker #1: We are adjusting by lowering the risk appetite temporarily in this segment. So, temporarily, we are going to have, let's say, a less pronounced change in the mix of the portfolio.
Speaker #1: But the general trend continues . Maybe I'll just add a little thin . As I mentioned in the guidance , we this is Alejandro .
Speaker #1: We we are expecting this year to have around 12% loan growth . So again , it's going to be a very strong year where we might see a little bit of a lower loan growth if in 2027 , when all the things that is mentioning would take place again , the main effect of El Nino are expected to be in 2027 .
Speaker #1: And that could mean, probably, a little bit of a lower rate of growth in loans.
Speaker #11: Okay . Thank you
Speaker #2: The next question will come from Andres Soto with Santander. Please go ahead.
Speaker #5: Good morning everybody . Thank you for the presentation . I have two questions . The first one is a follow up on on the El Nino provisions .
Speaker #5: I understand you guys will do a new assessment by the end of the quarter, beginning of the fourth one. But I would like to understand, from your guidance for the full year, how much of additional provisions are you already considering for that.
Speaker #5: Is it going to be similar to this quarter, which added 30 bps to the cost of risk? Is it going to be higher or lower?
Speaker #5: Any color that will be helpful.
Speaker #1: Hi, Andrés. Alejandro, the main call here is that what we're expecting is to remain within guidance, even with a severe El Niño case.
Speaker #1: So , I mean , we still don't know how far it's going to get . But given the dynamics we've seen this year where we were coming on the lower end of the guidance , what will probably happen is that we'll move towards the middle to higher end of the guidance , but stay within guidance , even with the full provisioning of a severe Nino .
Speaker #5: Okay . That helps . My second question is on us . JP lending , we saw a significant acceleration this quarter . I would like to understand this .
Speaker #5: Is the acceleration coming from increasing the balances for your existing customers as you extend duration, or is it coming from new customers? Or is it already reflecting the lending initiatives with SMEs within JP?
Speaker #12: Yes. Francesca, please.
Speaker #13: Yes . Hi , Andres . So it's actually coming from both as you have heard us , we start JP with a mono quota , a mono installment , and then once we know your behavior , we go into a multi installment .
Speaker #13: We do this for SM and for individuals. The growth is today primarily in individuals, just because the SM is a little further behind.
Speaker #13: We started later . So we're seeing growth on both sides . And what we are seeing as well is recurrence in customers . So repayments and a secondary loan , a third loan .
Speaker #13: And we are seeing ticket growth . And also term growth . Those contribute both on the on the loan portfolio side and of course on the Nim .
Speaker #13: So, this is still gradual. This is very slow, but this is what we're seeing on both segments.
Speaker #5: Thank you so much, Francesca. At some point, you mentioned what is the potential number of customers that you could reach via lending.
Speaker #5: Do you have any update to that number based on the performance that you have achieved over the past few quarters?
Speaker #12: Yes .
Speaker #13: So, as you know, it has a base of over 16 million. You've heard that credit penetration in Peru is still low.
Speaker #13: We have today reached over 5 million customers through a loan. And the portfolio is around—I would say we disbursed around 2 million loans.
Speaker #13: So the , the , the growth rate here is important . We don't have a set target in terms of like 50% of , of customers should have a loan or anything like that .
Speaker #13: But of course , we feel because of the product and the type of customer we serve , this is going to be a large , a large scale in terms of , of , of loans , small loans .
Speaker #13: Again , this is not going into high loans . That's more and more vivanco . This is very long , short loans and shorter term as well .
Speaker #13: So, growth should be expected.
Speaker #5: Perfect. Thank you so much. And congratulations, everybody, on the results.
Speaker #2: The next question will come from Alvaro Galicia, private investor. Please go ahead.
Speaker #14: Thank you for taking my question. Well, you've just upgraded your medium-term ROE target to an impressive 22%, driven by structural improvements and digital monetization.
Speaker #14: However, you also mentioned that the strongest impact of a Niño will likely materialize in Q1 2027, and a severe scenario could pressure loan growth and fee income.
Speaker #14: Realistically, how much of that 22% ROE guidance is at risk if Niño shifts from a manageable shock to a severe event later this year?
Speaker #14: And what is the specific cost of risk threshold that would force you to walk back on this new profitability target?
Speaker #1: Hi, this is Alejandro. So, when we talk about the mid-term ROE, we're talking about ROE for the next two to three years.
Speaker #1: And we believe it is completely achieved. I was mentioning we are not necessarily expressing a specific guidance for 2027, which would, of course, be impacted by a severe El Niño and could potentially in 2027.
Speaker #1: We could guide for a lower ROE than the 22%. Again, we're not saying anything about that as of now, but it doesn't change our expectation of achieving this 22% mid-term ROE at all.
Speaker #1: It would just have a shorter term impact . The same with loan growth . You know , I mean , we're expecting double digit long growth for the coming years .
Speaker #1: Not necessarily—it's not necessarily going to be the case in 2027, depending on how severe El Niño happens to be.
Speaker #2: The next question will come from Alonso Aramburu with BTG. Please go ahead.
Speaker #8: Yes . Hi . Good morning . Thank you for the call . Just following up on a little bit on El Nino as well .
Speaker #8: How are you thinking about dividends potential extraordinary dividends for the second half of the year . And maybe if I can ask about on a separate on a different way , if it's a severe El Nino , what what's the amount of provisions that you think you can , you will have to book this year ?
Speaker #8: Is it $500 million, or is it $1 billion? Maybe you can provide a figure for that. Thank you.
Speaker #12: I can take the second part. We'll talk about dividends. Yeah.
Speaker #1: Do you mean the total provision ? Yeah . So again , we are not providing a number because as was mentioned earlier , this is information that goes into our models and comes out with certain number that that we will include .
Speaker #1: And we'll give more color as we put more more provisions into the the , the numbers . But again , as I mentioned , we are expecting to remain in guidance even in the case of a severe El Nino from what we see today .
Speaker #1: So again, without giving a number, just to give you some color, imagine not going up to the upper side of our guidance.
Speaker #1: And that should give you a sense of what could end up happening. But it's going to depend on the information that keeps coming in the coming weeks and months.
Speaker #12: Yeah . And maybe on the , on the dividend question , we believe that we are very well capitalized . So the El Nino , the potential provisions or additional provisions because of a very strong El Nino , shouldn't affect the extraordinary dividend that we may pay this year , because actually we're paying profits at generated last year .
Speaker #12: So yeah , that's it
Speaker #8: Great . Thank you .
Speaker #10: Thank you
Speaker #2: It appears there are no further questions at this time. I will now turn the call back over to Mr. Gianfranco Ferrari, Chief Executive Officer, for closing remarks.
Speaker #12: Thank you. As we close today's discussion, I want to come back to the main message I shared at the beginning of the call.
Speaker #12: We have greater confidence in Peru's medium term outlook and Credicorp is well positioned to capture the opportunities ahead . The results we discussed today , together with the updated medium term ROE expectations , we shared , reflect on only a more constructive operating environment , but also the structural progress we've made across our ecosystem today has a deeper customer relationship , stronger digital capabilities , disciplined risk management , and a more scalable business model .
Speaker #12: Importantly , our growth remains anchored in our purpose improving lives by helping people and business thrive . That purpose guides how we invest , expand financial inclusion , and support our customers and communities through changing conditions .
Speaker #12: We believe in Peru, and we believe God has an important role in shaping its future. Every day, we have the privilege of helping millions of people and businesses move forward, and there is no greater opportunity than that.
Speaker #12: Before closing, I want to thank Alejandro for his partnership and leadership as CFO. I look forward to continuing to work closely with him in his new role leading our microfinance business and Banco Perú.
Speaker #12: I also want to welcome Ignacio, who will join us as CFO and will be with us on next quarter's call. Thank you all for joining us today.
