Credicorp Ltd. (BAP) Delivers +8.8% YoY Profit Growth in 2Q26
Key Takeaways
- Credicorp Ltd. (NYSE: BAP) reported 2Q26 net profit attributable to shareholders of S/1.98 billion, up 8.8% year over year but down 3.9% from 1Q26.
- Return on equity (ROE), a measure of profitability, reached 20.3%, down from 21.1% in the prior quarter but above the company's full-year guidance of around 19.5%.
- Net interest income (NII), or income from lending and deposit activity, rose 13.3% year over year to S/4.1 billion.
- Net interest margin (NIM), a key banking profitability gauge, expanded 0.21 percentage points to 6.63%.
- Total loans grew 13.1% year over year to S/159.43 billion, while deposits increased 17.7% to S/182.12 billion.
- Asset quality improved, with the non-performing loan (NPL) ratio at 4.1% versus 5.0% a year earlier, even as loan loss provisions jumped 51.7% from 1Q26 to S/731.21 million.
Why These Results Matter
Credicorp is Peru's largest financial holding company and the parent of Banco de Crédito del Perú (BCP), the country's leading bank, alongside businesses in microfinance, insurance, and investment services. Its quarterly results offer a useful window into Peruvian credit demand, deposit trends, and overall business confidence. The 2Q26 report came at a notable time, with Peru's economy still expanding amid political uncertainty tied to the 2026 general elections and ongoing questions about funding costs and margins. Investors have been watching closely to see whether BAP can sustain profitability even as its loan book continues to grow. I also checked this using Tickeron’s AI Screener to compare the stock against other Latin American financial names.
The Quarter's Reported Figures
Credicorp released its 2Q26 results after the market close on Thursday, August 13, 2026, with its conference call following on Friday, August 14. The company reports in Peruvian soles (S/). Net profit attributable to shareholders reached S/1.98 billion, an 8.8% increase year over year but a 3.9% decline from 1Q26.
Net interest income climbed 13.3% year over year to S/4.1 billion, and net interest margin expanded 0.21 percentage points to 6.63%. On the balance sheet, total loans rose 13.1% year over year to S/159.43 billion, while deposits increased 17.7% to S/182.12 billion, underscoring continued franchise momentum.
Asset quality improved, with the NPL ratio easing to 4.1% from 5.0% a year earlier. However, loan loss provisions rose 51.7% from the previous quarter to S/731.21 million, which weighed on sequential profitability. Management maintained its 2026 ROE guidance at around 19.5%; the reported 20.3% ROE remained above that target.
Market Reaction and Investor Sentiment
Credicorp shares entered the report trading near the upper end of their 52-week range in early August, reflecting optimism built on record first-quarter profitability and a strong Peruvian banking franchise. The 2Q26 release gave investors a mixed but generally constructive picture: resilient loan and deposit growth, improving asset quality, and an ROE above guidance on one side, and a sharp sequential increase in loan loss provisions on the other.
Because the quarterly profit decline was driven by higher credit-loss provisioning rather than weaker revenue, the market is likely to interpret the quarter through the lens of whether that provisioning reflects prudent risk management or the beginning of a more expensive credit cycle. The August 14 conference call was expected to provide additional color on credit trends and the company's outlook for the rest of 2026.
Forward Outlook and Key Factors to Monitor
The most important watch item is provisioning and cost of risk. The 51.7% sequential jump in loan loss provisions raises the question of whether credit costs will keep climbing in the second half of 2026. Management's maintained ROE guidance of around 19.5% signals confidence that profitability can absorb higher provisions, but investors will monitor the NPL ratio and coverage levels closely in the coming quarters.
Loan growth and margins are also central. Credicorp's loan book expanded 13.1% year over year, and the second-quarter NIM of 6.63% remained healthy. Whether these trends persist will depend on Peru's economic momentum, interest rates, and funding costs across the banking system.
Finally, external factors remain in focus. Peru's general elections and broader political landscape, along with weather-related risks such as El Niño, could affect business confidence and agriculture-linked lending. Digital platforms such as Yape also remain a key growth theme as Credicorp continues to build out its digital and payments ecosystem.
Using Tickeron’s AI Screener for Deeper Analysis
In my own research process, Tickeron’s AI Screener has become a go-to resource for quickly filtering banking stocks by fundamentals, technical patterns, and industry signals. It helps surface comparable names and emerging trends without spending hours on manual screens, which is particularly useful when evaluating Latin American financials like BAP. The tool supports customizable filters on market cap, volatility, and performance metrics to identify relevant ideas efficiently.
Disclaimer
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
BAP sees its Stochastic Oscillator ascending out of oversold territory
On October 06, 2026, the Stochastic Oscillator for BAP moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 49 instances where the indicator left the oversold zone. In 35 of the 49 cases the stock moved higher in the following days. This puts the odds of a move higher at over 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
BAP moved above its 50-day moving average on October 09, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.36% 3-day Advance, the price is estimated to grow further. Considering data from situations where BAP advanced for three days, in 232 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
The Aroon Indicator entered an Uptrend today. In 250 of 354 cases where BAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BAP as a result. In 40 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 49%.
The Moving Average Convergence Divergence Histogram (MACD) for BAP turned negative on October 01, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 26 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 59%.
The 10-day moving average for BAP crossed bearishly below the 50-day moving average on October 07, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 47%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BAP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
BAP broke above its upper Bollinger Band on September 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 58, placing this stock better than average.
The Tickeron SMR rating for this company is 4 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 24 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. BAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: BAP's P/B Ratio (2.814) is very high in comparison to the industry average of (1.323). P/E Ratio (14.571) is within average values for comparable stocks, (23.509). Projected Growth (PEG Ratio) (1.040) is also within normal values, averaging (1.190). Dividend Yield (0.037) settles around the average of (0.030) among similar stocks. P/S Ratio (4.088) is also within normal values, averaging (3.738).
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