| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 42.90 | -88 |
| Intrinsic value (DCF) | 152.78 | -57 |
| Graham-Dodd Method | 17.50 | -95 |
| Graham Formula | 222.30 | -38 |
Credicorp Ltd. (LSE: 0U8N.L) is a leading financial services holding company based in Lima, Peru, with a diversified portfolio spanning banking, insurance, pensions, microfinance, and wealth management. Founded in 1889, Credicorp operates primarily in Peru but also has an international presence, serving individuals, small businesses, corporations, and institutional clients. The company's Universal Banking segment provides deposit accounts, loans, and financial instruments, while its Insurance and Pensions segment offers life, health, and commercial insurance, alongside private pension fund management. Credicorp's Microfinance segment supports small and microenterprises with tailored financial solutions, and its Investment Banking and Wealth Management division caters to high-net-worth individuals and institutional investors. With a market capitalization exceeding $16 billion, Credicorp is a key player in Peru's financial sector, benefiting from the country's growing economy and expanding middle class. The company's diversified revenue streams and strong market positioning make it a resilient player in Latin America's financial services landscape.
Credicorp Ltd. presents a compelling investment case due to its dominant position in Peru's financial sector, diversified business model, and strong profitability metrics. The company reported $18.2 billion in revenue and $5.5 billion in net income for the latest fiscal year, with a diluted EPS of $69.09, reflecting robust earnings power. Its healthy operating cash flow of $1.24 billion and substantial cash reserves ($47.5 billion) provide financial flexibility. However, investors should consider risks such as exposure to Peru's economic and political volatility, regulatory changes in the financial sector, and competition from regional players. The company's beta of 0.994 suggests it moves closely with the broader market, offering moderate risk-adjusted returns. Credicorp's dividend yield, supported by a $13.87 per share payout, adds to its appeal for income-focused investors.
Credicorp Ltd. holds a competitive advantage through its diversified financial services ecosystem, which includes banking, insurance, microfinance, and wealth management. This integrated model allows cross-selling opportunities and strengthens customer retention. The company's strong brand recognition in Peru, coupled with its long-standing history (founded in 1889), reinforces trust among clients. Credicorp's Universal Banking segment benefits from Peru's underbanked population, while its Microfinance division captures growth in small and medium enterprises (SMEs). However, competition is intensifying from both local banks and international financial institutions expanding into Latin America. Credicorp's ability to maintain low funding costs and efficient operations gives it an edge, but digital disruption from fintech players poses a long-term challenge. The company's Investment Banking and Wealth Management segment differentiates it from pure-play retail banks, providing higher-margin services. Regulatory expertise in Peru's complex financial environment further solidifies its moat.