Credicorp Reports Solid 2Q, Earnings Continue To Increase

Credicorp, Ltd. BAP reported 2Q earnings of $162M ($2.03/share) which was well ahead of JP Morgan's estimate of $128M ($1.61/share). Revenues benefited from $26M pretax on non-recurring realized gains and securities, according to JP Morgan, which forecasts a positive outlook for the next quarter. Credicorp's core trends were positive, according to JP Morgan, as loan growth accelerated and asset quality and operating efficiency improved, net interest margins increased, and insurance results reported exceptionally well. Loan growth was up 6.5% q/q and 19% y/y, compared to JP Morgan's estimates of 4.0% q/q and 16.9% y/y, respectively. JP Morgan maintains its "neutral" rating for Credicorp but has raised the price target from $100 to $120. Credicorp, Ltd. closed yesterday at $98.03.