Credicorp Ltd

Strong profitability and execution; medium-term ROE upgraded - Q2 ROE: 20.3% (reported), driven by diversified performance, faster loan growth, and higher risk-adjusted revenues. - Innovation continues to matter: innovation portfolio contributed 9.9% of risk-adjusted revenues. - Operational metrics: risk-adjusted NIM 5.5%, efficiency ratio 45.4%. - Key surprise/upgrade: company now targets medium-term ROE ~22% (previous ~19.5%), citing improving economics and structural transformation (better credit quality, funding advantage, revenue diversification, tech/data investments).

Loan growth re-accelerated; asset quality improving (for now) - Loans (quarter-end) up 13.1% YoY; led by BCP (retail + wholesale) and Mibanco. - NPL ratio fell to 4.1%; cost of risk 1.9%. - NIM 6.6% (benefited by low-cost funding and loan mix). - Core income resilience/growth: other core income +19.7% YoY; fee income +15.9% (incl. Yape and BCP transaction activity); FX gains +29.8% on higher volumes/volatility.

El Niño is the main near-term risk; guidance impact is being actively incorporated - Management frames El Niño as transitory/temporary, not a structural change to Peru’s growth outlook. - Direct exposure: estimated ~9% of total loans potentially affected. - Already reflected in provisioning: ~$106m additional provisions (so reported cost of risk includes El Niño impact). - Q2 El Niño-related provisions: cost of risk included an impact of ~27 bps. - Full-year 2026 cost of risk: expected to remain within guidance; cost of risk expected to rise in 2H 2026 as new information is incorporated. - Potential downside channel (if worse): could slow loan growth and fee income via lower activity, but company says it is better prepared than prior cycles (stronger governance/playbook, analytics, and healthier starting balance sheet).