Credicorp Ltd. (BAP): BCG Matrix [Dec-2025 Updated]

You're looking for a clear, no-nonsense map of Credicorp Ltd.'s business health as of late 2025, and honestly, the BCG Matrix is the perfect tool for showing where the money is and where the future bets lie. We see the core engine, Universal Banking, acting as a massive Cash Cow with a 25.6% ROE, funding the high-growth Stars like Yape, which already commands 15.5 million monthly users. Still, this portfolio isn't perfect; we have Question Marks like the Chilean fintech Tenpo demanding capital while Dogs like BCP Bolivia need strategic review. Let's dive into the specifics of these four quadrants to see exactly where Credicorp is placing its chips.

Background of Credicorp Ltd. (BAP)

You're looking at Credicorp Ltd. (BAP), which stands as the leading financial services holding company across Peru, with operations extending into Chile, Colombia, Bolivia, and Panama. Honestly, this diversification is key to its story, helping it decouple results from the macroeconomic cycle of any single country.

The company organizes its business into four main lines. First, you have Universal Banking, which is the bedrock, primarily through Banco de Crédito del Perú (BCP) and Banco de Crédito de Bolivia. This division is massive; BCP alone commands about a 35% market share of all assets in Peru.

Next up is Insurance & Pensions, featuring Grupo Pacifico and Prima AFP. In the insurance space, Pacifico is in a near duopoly, holding around 80% of the health insurance market share in Peru, and about 25% in pension funds. Then there's Microfinance, driven by Mibanco in Peru and Colombia, which focuses on expanding reach in underserved markets.

The fourth line is Investment Management & Advisory, covering Credicorp Capital and Wealth Management functions. This segment shows strong dynamics, with AUMs in U.S. dollars for Asset Management up 14% year-over-year as of Q3 2025.

What really defines Credicorp lately is its aggressive push on innovation, which management sees as a structural growth engine. Platforms like Yape, the digital payments ecosystem, are central to this; as of Q3 2025, Yape boasted 15.5 million Monthly Active Users (MAUs) and contributed a meaningful mid-single-digit percentage of group revenue.

The firm is working hard to make these new ventures pay off, targeting 10% of risk-adjusted revenues from new business models by 2026, up from 7.4% achieved in the third quarter of 2025. This focus on digital transformation is happening while the core business remains incredibly strong; for instance, the efficiency ratio for the first half of 2025 was 44.9%, and they reaffirmed a medium-term Return on Equity target of around 19.5%.

Financially, the picture in late 2025 looks solid, with the Q3 2025 Return on Equity hitting 19.6%, supported by improving asset quality-the Non-Performing Loan (NPL) Ratio was down to 4.8%-and a risk-adjusted Net Interest Margin (NIM) reaching 5.5% year-to-date.

Credicorp Ltd. (BAP) - BCG Matrix: Stars

You're looking at the engine room of Credicorp Ltd. (BAP)'s growth right now, the units that command high market share in markets that are still expanding rapidly. These are the Stars; they need cash to fuel their expansion, but they are the future Cash Cows, so we invest heavily here.

Let's break down the key players in this quadrant based on the latest figures from Q3 2025.

Yape: The Digital Ecosystem Leader

• Yape reached 15.5 million monthly active users in Q3 2025.
• This user base represents approximately 82% of the economically active population.
• In Q3 2025, Yape specifically contributed 6.6% of Credicorp's total risk-adjusted revenue.

Honestly, that market penetration is what defines a Star-it's the leader in a growing digital payments space. The next step is deepening that monetization, which we see happening rapidly through its lending arm.

Yape Lending: Rapid Monetization

The monetization of that massive user base is accelerating. Lending revenue within Yape surged an incredible 13x year-over-year. To be fair, this segment is now making up 20% of Yape's total revenue, up from just 7% a year prior. This rapid growth in lending validates the strategy to diversify revenue away from pure transaction fees.

BCP Retail Banking: Core Loan Engine

The traditional banking side still shows strong momentum in its high-growth segments. FX-neutral loan growth accelerated to 7% year-over-year. This growth was primarily fueled by the retail segments, specifically mortgages and consumer loans. Here's the quick math: that 7% FX-neutral growth shows the underlying demand for Credicorp's higher-yield retail products is strong, even as the overall loan book growth was impacted by accounting adjustments.

Innovation Portfolio: On Track for Targets

This broader category, which includes Yape, is firmly on track to become a major revenue contributor. As of Q3 2025, the Innovation Portfolio contributes 7.4% of Credicorp's total risk-adjusted revenue. Management is signaling confidence in hitting the 10% target by 2026. If onboarding takes longer than expected, that target could slip, but the current trajectory is positive.

Here is a snapshot of these key Star business units:

These units are consuming cash to maintain their market leadership and fund expansion, but their high market share in growing segments means they are essential to Credicorp's future as a Cash Cow.

Credicorp Ltd. (BAP) - BCG Matrix: Cash Cows

Cash Cows are market leaders in mature segments, generating excess cash flow to fund other areas of Credicorp Ltd. These units possess high market share and strong profitability, requiring minimal promotional investment to maintain their position.

Universal Banking (BCP Peru) acts as the core engine, maintaining a dominant position in the Peruvian market. BCP holds a lending market share of about 37% in Peru, including its subsidiary MiBanco. The consolidated group delivered a strong Return on Equity (ROE) of 19.6% for the third quarter of 2025.

The structural advantage of this segment is its funding base, which insulates margins effectively. Low-cost deposits accounted for 69.8% of total deposits as of Q3 2025. This strength helped the Cost of Funds fall to 2.43% year-over-year in Q3 2025.

The consolidated profitability anchors the group's outlook. Credicorp Ltd. reaffirms its guidance for a full-year 2025 ROE of around 17.5%. The company maintains a medium-term goal to achieve a sustainable ROE of 19.5%.

The Insurance & Pensions business, primarily through Grupo Pacífico, also functions as a reliable cash generator in its mature Peruvian market. Grupo Pacífico reported a solid ROE of 20.9% for the third quarter of 2025.

Key financial metrics supporting the Cash Cow status for these core units include:

• Low-cost deposits as a percentage of total deposits: 69.8%
• Q3 2025 ROE for Grupo Pacífico: 20.9%
• Credicorp Ltd. 2025 full-year ROE guidance: 17.5%
• BCP Peru lending market share (including MiBanco): approximately 37%

The cash generation profile of these units is critical for corporate funding needs. Here's a quick look at the cash deployment priorities these units support:

The strategy for these units is to maintain productivity and passively harvest the gains. Investments focus on efficiency improvements rather than aggressive market share expansion. For instance, operating expense growth in Q3 2025 lagged operating income growth, leading to an Efficiency Ratio of 46.4% for the quarter.

Credicorp Ltd. (BAP) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Credicorp Ltd. (BAP), the units categorized as Dogs typically operate in markets with limited expansion prospects or possess a smaller, less influential regional footprint compared to the core businesses. You need to be disciplined here; expensive turn-around plans usually don't help, so the focus shifts to minimizing drag.

Consider BCP Bolivia. Operations there faced a non-recurring accounting contraction of 2% in total assets in Q1 2025. This was a direct result of a balance sheet revaluation following the adoption of a more market reflective exchange rate, showing the inherent volatility and lower growth profile of that specific geography relative to the consolidated entity. This contrasts with the core BCP operations in Peru, which posted a strong ROE of 27.1% in Q1 2025.

The Investment Management & Advisory business, primarily Credicorp Capital, represents another area fitting this profile. For Q2 2025, this segment registered the lowest contribution to net income at just 2.5%. This reflects its smaller scale and exposure to a more volatile regional market share compared to the Universal Banking or Insurance segments. To be fair, the overall company posted strong Q2 2025 results, with an EPS of $6.42 on revenue of $1.57 billion and an ROE of 20.7%, but the relative underperformance of this unit is clear.

Finally, we look at internal structural costs that act like dogs-units that consume cash without commensurate return. Legacy IT Systems fall here. We see ongoing high operating expense growth of +12.8% Year-to-Date (YTD) being fueled by necessary core business IT investments. While these investments are strategic for the future, the immediate impact is pressure on efficiency ratios, as operating expenses at the core BCP business grew by 15.6% year-over-year in Q1 2025 alone. This unit requires careful management to prevent it from becoming a persistent cash drain.

Here is a quick look at the quantitative context surrounding these units as of mid-2025:

You should be aware of the following characteristics associated with these Dog positions:

• BCP Bolivia revaluation highlights currency risk exposure.
• Investment Management & Advisory shows lower scale in a competitive field.
• High IT expense growth pressures the overall Cost-to-Income ratio.
• The unit's low market share suggests limited pricing power.
• Divestiture or aggressive cost-cutting is the typical strategic path.

What this estimate hides is the potential for a small, niche success within the Investment Management & Advisory space that might not be visible at the segment level. Still, the low contribution percentage demands scrutiny.

Finance: draft 13-week cash view by Friday.

Credicorp Ltd. (BAP) - BCG Matrix: Question Marks

You're looking at business units that are burning cash now but have the potential to be tomorrow's Stars. These are high-growth markets where Credicorp Ltd. still holds a relatively small piece of the pie, so they need heavy investment to capture more share quickly, or they risk becoming Dogs.

Mibanco Colombia

This microfinance operation is in a market that demands capital for growth. The scenario you are working with suggests Mibanco Colombia exhibits double-digit year-over-year loan growth in that high-growth microfinance market, but its profitability, as defined for this analysis, is 12.3% ROE in Q3 2025, which is lower than the group average ROE of 19.6% reported for Q3 2025. Real-life data shows Mibanco's overall profitability rose to 18.8% in Q3 2025 with record loan disbursements. Still, the unit requires strategic capital to solidify its market position against local competitors.

Tenpo (Chilean Fintech)

Tenpo represents Credicorp Ltd.'s digital bank venture in Chile, a market characterized by ongoing easing of interest rates, which should eventually spur consumption. As a newer digital offering, its market share is defintely still low, meaning it requires significant, sustained investment to achieve critical mass. This unit, alongside Tyba, is part of the innovation portfolio aimed at contributing 10% of Credicorp Ltd.'s risk-adjusted revenue by 2026.

Yape's Monetization Cost

While Yape is a massive success in user acquisition, scaling its digital platform creates a temporary drag on immediate efficiency, fitting the Question Mark profile where high growth consumes cash. For this analysis, the efficiency ratio is set at 45.7%, reflecting the high operating expenses associated with scaling. By Q3 2025, Yape had 15.5 million monthly active users, accounting for 82% of the economically active population in Peru. The monetization efforts are showing results, with the loan business growing from 7% of its revenue in Q3 2024 to 20% in Q3 2025. The revenue per monthly active user reached PEN 7.4, with expenses per user at PEN 5 in Q3 2025.

Regional Expansion (outside Peru)

Operations outside the core Peruvian market, specifically in countries like Chile and Panama, fall into this quadrant. These are smaller, non-dominant operations that require capital infusions to gain meaningful market share in already competitive environments. Credicorp Ltd. maintains its presence across these countries as part of its diversified regional strategy, but these units are not yet generating the scale of the core Peruvian or Colombian microfinance businesses.

Here's a quick look at some of the key metrics defining these Question Marks and the group context:

You need to decide which of these units get the heavy investment to move them toward the Star quadrant, or if the capital drain is too high to justify the risk.