Saturday, June 9, 2018

Credicorp Leading The Recovery With Strong Growth And Credit

Peru’s Credicorp (BAP) has been something of a middling performer since my last update. The shares are up about 10% since early September (excluding dividends), but then the S&P 500 is up a little more than that and you could have earned similar returns from other Andean banks like Banco de Chile (BCH) and Banco Santander-Chile (BSAC), so I don’t feel like Credicorp has really lived up to what I’d have hoped. Then again, given the weakness in the Peruvian banking sector in the second half of 2017, it’s not a terrible result either.

As things stand today, Credicorp is in that gray area of “like the company, kinda uncertain on the stock.” I think a low double-digit total return is possible from here, and I do expect double-digit long-term earnings growth, but the P/TBV is right about where I think it should be and there’s still some work for management to do building up its retail lending business and making its dividend/capital return policy more transparent.

Continue here:
Credicorp Leading The Recovery With Strong Growth And Credit

No comments: