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Credicorp's Q2 profit rises 6.3% as provisions fall


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Credicorp's Q2 profit rises 6.3% as provisions fall

Credicorp Ltd. said that its second-quarter profit grew 6.3% year over year as the company saw slightly stronger net interest income and a sharp decline in provision expenses.

The financial group showed net income attributed to the company of 977.8 million Peruvian soles for the quarter, up from 920.2 million soles in the year-ago period. EPS rose to 12.26 soles from 11.54 soles.

Of the total, Banco de Crédito del Perú, Credicorp's primary banking unit, contributed 827.6 million soles in net profit, up 14.7% year over year from 721.6 million soles.

The result came as the company saw net interest income increase 4.8% year over year to 2.06 billion soles. Credicorp's net interest margin hit 5.28%, expanding from 5.15% in the linked quarter and 5.25% a year ago.

Net provisions for loan losses fell 27.7% to 313.2 million soles from 433.2 million soles year over year, which Credicorp attributed to better risk quality of the retail banking portfolio, as well as in Peruvian unit Mibanco Banco de la Microempresa SA's portfolio. The delinquency ratio of loans over 90 days past due stood at 2.25% in the second quarter, higher than the 2.19% recorded in the first quarter but flat from a year earlier.

Total loans ended the quarter at 102.77 billion soles, up 9.7% from 93.67 billion soles 12 months earlier.

As of Aug. 8, US$1 was equivalent to 3.27 Peruvian soles.