Credicorp Still A Leader In A Growing, Under-Served Market

Peru isn't on the radar of many investors, perhaps in part because it is still a smaller, mining-dominated economy and also because there aren't many liquid ADRs to follow. Whatever the case, Credicorp (NYSE:BAP) continues to look like a rare asset - a responsible, well-run Peruvian bank with good market share and yet still good growth potential given the size of the under-served Peruvian market.

These shares have done alright since my last favorable write-up, climbing almost 20% as the company has continued to do a solid job growing its business. Although I do believe Credicorp's ROE is likely to shrink in the future as the Peruvian economy matures and rivals like the Peruvian operations of BBVA (NYSE:BBVA) and Bank of Nova Scotia (NYSE:BNS) compete harder for business, I'm still looking for long-term earnings growth of over 10% on an annualized basis, supporting a fair value of over $160/share today.

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Credicorp Still A Leader In A Growing, Under-Served Market