Credicorp's Margins Come In Below Expectations

Goldman Sachs has published a research report on Credicorp Ltd. BAP after the company reported 3Q earnings below expectations. In the report, Goldman Sachs writes "Credicorp reported 3Q2010 recurring net income of US$149 mn, 2.8% below our estimate of US$ 154 mn (US$1.87 per share, 2.2% above consensus). Management will host a conference call on November 11 at9.30 a.m. ET (1-800-561-2731, Passcode: 61963654). Credicorp's 3Q2010 EPS was slightly below our estimate primarily due to lower margins. On the positive side, loans continue to grow at a rapid rateand asset quality kept improving, despite higher provisions. The stock is trading at 3.0X 2011E book value and 13.5X 2011E P/E." Goldman Sachs maintains its Neutral rating on Credicorp, which closed yesterday at $124.93.