Credicorp Ltd. — FY2023 Form 20-F Summary
Business context and reporting period. Credicorp is a Bermuda-incorporated financial holding company operating mainly in Peru, with banking, microfinance, insurance and pensions, and investment management businesses across Latin America. This is an annual report for the fiscal year ended December 31, 2023—not a standalone Q4 filing. Financial statements are prepared under IFRS as issued by the IASB and presented in Peruvian soles (S/). The 2022 comparative figures were restated for IFRS 17; the filing says that adoption increased 2022 net income by S/14.7 million and year-end equity by S/15.5 million.
Key financial metrics
| Metric | FY2023 / year-end | Comparison |
|---|---|---|
| Net profit attributable to Credicorp shareholders | S/4.866 billion | Up 4.7% from S/4.648 billion in restated 2022 |
| Total net profit | S/4.960 billion | Compared with S/4.760 billion in 2022 |
| Profit before income tax | S/6.848 billion | Compared with S/6.871 billion in 2022 |
| Net interest income | S/12.938 billion | Up 16.6% |
| Other income | S/5.656 billion | Up 11.6%; gains on securities and fee income contributed |
| Total assets | S/238.840 billion | Up 1.5% |
| Total loans | S/144.976 billion | Down 2.5%; amortization of government-supported Reactiva loans and lower wholesale disbursements were key factors |
| Total deposits, excluding interest payable | S/147.705 billion | Up 0.5%; more funds moved into higher-cost time deposits |
| Total liabilities / total equity | S/205.733 billion / S/33.107 billion | Liabilities were broadly flat; equity increased 11.9% |
| Net cash from operating / investing / financing activities | S/4.080 billion / (S/1.255 billion) / (S/2.264 billion) | Operating cash flow rebounded from negative S/1.151 billion in 2022 |
| Cash and cash equivalents at year-end | S/33.921 billion | Down from S/34.121 billion |
| Selected returns and efficiency | ROAA 2.01%; ROAE 15.83%; operating efficiency 46.08% | 2022: 1.97%; 16.81%; 47.50%, respectively |
| Credit quality | Internal overdue ratio 4.23%; non-performing loan ratio 5.89%; NPL coverage 97.02% | 2022: 4.00%; 5.41%; 97.93% |
| Capital | BIS ratio 18.59%; BCP Stand-alone CET1 ratio 13.20% | Credicorp BIS ratio was 19.31% in 2022; BCP CET1 was 12.59% |
The filing reports a 6.01% selected net interest margin (NIM), up from 5.09% in 2022. Elsewhere, a statistical table gives 6.13% using a different calculation basis. Investors should verify the applicable definition and reconciliation. The filing does not provide standalone Q4 financial results in the supplied text.
Interest and similar income rose 25.2%, while interest and similar expenses rose 49.5%, reflecting higher yields and the shift toward more expensive term deposits. Net provisions for credit losses, after recoveries, increased 100.0% to S/3.622 billion. Total other expenses rose 12.2% to S/9.334 billion; management cites digital and disruptive initiatives, technology, and personnel costs. The filing reports S/14.595 billion of bonds and notes issued, S/12.279 billion due to banks and correspondents, and S/10.168 billion of payables from repurchase agreements and securities lending at year-end.
Material changes versus 2022
- Net profit attributable to shareholders increased 4.7%, but ROAE declined from 16.81% to 15.83%.
- Credit costs rose sharply: cost of risk increased to 2.50% from 1.22%, with higher provisions tied mainly to older consumer and credit-card vintages, higher-risk SME-Pyme loans, and weaker payment capacity among over-indebted Mibanco clients.
- Loans contracted 2.5%, while deposits edged up 0.5%. Time deposits increased as customers sought higher rates; savings and demand deposits declined.
- Net interest margin expanded, and the operating efficiency ratio improved to 46.08% from 47.50%, although operating expenses rose.
- IFRS 17 changed insurance accounting and presentation, and 2022 was restated for comparability.
- Credicorp recorded a S/71.9 million goodwill impairment related to Mibanco Colombia; the subsidiary reported a net loss attributable to Credicorp of S/64 million.
Outlook, commentary, risks and unusual items
- Outlook: Management expected Peru’s GDP to rebound by about 3% in 2024. It anticipated faster lending growth than in 2023, resilient NIM, and cost of risk at similar levels, while continuing significant investment in digital transformation. These are expectations, not guarantees.
- Digital initiatives: Management said Yape was targeting break-even during 2024. Credicorp also continued investment in ventures and digital capabilities; returns and monetization are uncertain.
- Macroeconomic and political risks: Peru’s GDP contracted 0.6% in 2023 amid social unrest and weather disruptions, including El Niño. The filing highlights political uncertainty, weak demand, inflation and interest-rate risk, natural disasters, and potential effects on borrowers and loan quality.
- Regional risks: Bolivia faced U.S.-dollar availability constraints and falling reserves; Colombia’s GDP grew only 0.6%; and Panama’s copper-mine closure created material economic and fiscal uncertainty. These conditions may affect subsidiaries and consolidated results.
- Funding and market risks: Credicorp relies significantly on deposits and is exposed to deposit outflows, higher funding costs, interest rates, currencies, investment-price volatility, and reduced access to funding markets. The reported liquidity coverage ratios for BCP and Mibanco remained above 100% in December 2023.
- Legal and governance matters: ASB Bank Corp. settled the Madoff and Fairfield litigation for US$42.75 million, which the filing says was fully provisioned; payment and dismissals occurred in April 2024, after year-end. The Fairfield dismissal remained subject to confirmation of the appeal dismissal. The filing also describes paid SMV fines relating to disclosure of political contributions, with proceedings before the Judiciary, and an ongoing Peruvian investigation involving BCP’s Olmos Project advisory services and Credicorp’s CEO; management says it does not expect material operating impact.
- Dividends: Credicorp paid S/25 per share in 2023 based on 2022 results. No dividend on 2023 results had been declared as of the annual report date. The company’s stated policy targets annual cash dividends of at least 25% of consolidated net profit, subject to legal, subsidiary, capital, liquidity, and other conditions.
- Accounting and audit: The 2023 statements received an unqualified audit opinion from EY’s member firm; the auditor also opined that internal control over financial reporting was effective. Critical audit matters included expected credit losses and life-insurance contract liabilities.
Most important facts for investors to verify
- Reconcile the reported 6.01% selected NIM with the 6.13% figure elsewhere in the filing, and confirm the definition used for comparisons.
- Review the increase in credit provisions, overdue and non-performing loan ratios, coverage, and subsequent portfolio performance—especially consumer, credit-card, SME-Pyme, and Mibanco exposures.
- Confirm the status and remaining procedural steps for the Madoff/Fairfield settlement and the Olmos Project investigation; distinguish management’s assessment from legal outcomes.
- Assess the effect of deposit mix, funding costs, maturities, and year-end liquidity measures, including exposure to uninsured deposits and foreign-currency funding.
- Track whether 2024 lending, NIM, cost-of-risk, Peru GDP, and Yape break-even expectations are achieved, and monitor the Mibanco Colombia impairment and profitability trajectory.
- Check the full audited financial statements and notes for cash-flow classification, capital and liquidity calculations, IFRS 17 comparability, and any subsequent dividend declaration.