Credicorp Ltd (0U8N.L) Q4 2024 Earnings Report

Credicorp Ltd reported a robust EOP/Q4 2024 revenue build at PEN 6.607B, up 29.5% year-over-year and 20.8% quarter-over-quarter, supported by a broad-based financial services platform. Gross profit reached PEN 4.091B with a gross margin of 61.9%, and operating income stood at PEN 2.671B (operating margin 40.4%). Net income was PEN 1.127B, translating to a net margin of 17.1% and an EPS of PEN 14.14. Year-over-year profitability softened meaningfully at the net level (-25.5% YoY) despite strong top-line growth, reflecting higher other income/expense items and a tax line that contributed to the bottom-line deviation.

From a cash-flow and balance-sheet perspective, Credicorp remains highly liquid with PEN 81.716B in cash and short-term investments and total assets of PEN 256.09B. Net debt sits at a modest negative level (net cash) of PEN -10.02B, indicating substantial liquidity cushions. Operating cash flow was negative PEN -4.464B, driven largely by working capital dynamics and other non-cash items, while free cash flow was also negative at PEN -4.545B. A dramatic positive swing in cash from foreign exchange effects (+PEN 44.55B) and substantial financing activity contributed to a net increase in cash of PEN 47.57B, bringing ending cash to PEN 47.57B. Leverage indicators show a conservative capital stance: debt ratio 0.111, debt/equity 0.828, and interest coverage near 1.93, underscoring a solid liquidity footprint but a need to monitor operating cash generation going forward.

Valuation and market context show Credicorp trading around P/E 12.22x, P/B 1.60x, with a dividend yield of about 1.6%. While positioning remains strong relative to liquidity and asset quality risk in Peru, profitability has come under pressure versus the prior year, and free cash flow remains negative on a standalone basis. Investors should monitor macro-peru dynamics, currency stability, loan growth, and non-interest income evolution to gauge the trajectory of earnings quality in 2025.