Goldman Sachs: BAP Reports Solid Q2 Earnings And Growth

Analysts at Goldman Sachs reiterate their "neutral" rating on Credicorp BAP, while raising their estimates for the company. The target price for BAP is set to $110.70. According to Goldman Sachs, “Credicorp reported 2Q2010 EPS of R$1.80, up 11.1% qoq but 1.7% below our forecast. Earnings were solid overall, supported by strong loan growth and improving asset quality, laying the ground for further EPS expansion in 2H2010.” “On August 26, the Peruvian Central Bank for the third time in three months raised reserve requirements on deposits (now at 8%). The bank is also increasing base rates, which now stand at 2.5%. Both are aimed at slowing an economy that is growing at more than 7% on an annualized basis…. We are adjusting our forecast for loans, assuming stronger growth in higher margin products. While we now expect slightly lower overall loan growth, the higher margin portfolio leads to an increase in our expectations for NIM. We offset this with slightly higher provision expenses,” the analysts add. Goldman Sachs has raised its EPS estimates for 2010 and 2011 from $7.36 to $7.38 and from $8.92 to $8.98, respectively. More Analyst Ratings here