Boston, MA 05/16/2014 (wallstreetpr) – The financial services company Credicorp Ltd. (USA) (NYSE:BAP) had all the good reasons to celebrate its 1Q2014 performance. The company posted an increase in profit as its loan portfolio grew significantly in the quarter. Buoyed by strong quarterly performance, the company looks forward to more positive results in the balance of 2014.
The company’s performance gained immense support from acquisitions, high interest rates, costs controls and reduced delinquency. On these fronts, Credicorp expects to build a solid future where profit growth will be commonplace.
Peru’s largest financial company Credicorp Ltd. (USA) (NYSE:BAP) previously reported its finances in dollar but shifted to local currency sol in January.
1Q earnings in summary
Credicorp Ltd. (USA) (NYSE:BAP) saw its 1Q profit up 41 percent to 662 million soles or $238 million. The quarter benefited from about 26 percent increase in loan portfolio, a gain that was attributed to the acquisition of a majority stake in micro-finance company MiBanco. The company acquired controlling stake in MiBanco for $179.5 million.
In addition to higher loan transactions in the quarter, Credicorp Ltd. (USA) (NYSE:BAP) also benefited from 20.5 percent increase in net interest income. The company generated 1.4 billion soles in net interest income.
Cost controls
The company continued its curb on costs and expenses in the three months to March 2014. The reduction in costs supported higher financial savings that provided support to profit growth. The quarter also saw a strong control over delinquency that stemmed financial losses. As such, Credicorp Ltd. (USA) (NYSE:BAP) expects to identify new cost-saving opportunities to grow its bottom-line.
Credicorp Ltd. (USA) (NYSE:BAP) operates a pension fund, insurance company and Banco de Credito, Peru’s biggest bank. The company seeks to increase market share in these businesses to attract higher revenue. It intends to improve customer relationship, introduce new products and continue strategic acquisitions to support revenue growth.
Shares of the company are up 17.25 percent year-to-date. Analysts at JPMorgan Chase & Co. (NYSE:JPM) recently reinstated their “overweight” rating on the stock and issued price target of $173.
