Credicorp posts 17.6% increase in Q1 net profit

Credicorp BAP, one of Peru's largest financial holding companies, reported a first-quarter net profit of 1.78 billion Peruvian soles ($484 million) on Thursday, up 17.6% from the same period last year.

Analysts polled by LSEG had on average predicted a net profit of 1.61 billion soles.

Even excluding a one-time gain from acquiring the remaining stake in a joint venture with Empresas Banmedica, net income was up 6.6% year-on-year, the company said in a press release.

Net interest income, the difference between what banks earn on loans and dole out to pay down liabilities, increased 4.3% from a year ago.

The increase was primarily due to lower interest expenses, supported by declining market rates and a greater share of low-cost deposits, the company said.

The company reported a return on equity (ROE) of 20.3%, which Credicorp CEO Gianfranco Ferrari said in the press release reflected "the power of our diversified business model, disciplined risk culture and acceleration in Peru's economic recovery."

($1 = 3.6810 Peruvian soles)